Lessons from South African fraud history

South Africa is a nation rich in history and variety that draws roughly 2.5 million visitors every year. But what attracts international investors to South Africa is its gold mining business.

South Africa also boasts the largest industrialized economy on the continent. Aside from its natural resources, history, and tourism, South Africa is one of Africa’s most active financial markets. Due of its allure, many people have fallen prey to fraudsters in the nation looking to make a good investment.

A number of publications state that South African natives or even international fraudsters have conned foreign investors and tourists. Scammers go to great lengths to deceive individuals,

and it’s hard for investors to detect. Scammers impersonating as airport officials, engaging in unexpected conversations, stealing from backpacks or carry-on baggage, or even phony taxi drivers taking travelers to unfamiliar places are some instances. They also advise customers to acquire a receipt for a fake taxi voucher, bus card, or airport receipt, send them to an ATM to receive that fake voucher, then create a diversion to seize and flee with your card.

Several South African investors lost over $13 million to a bitcoin fraudster. This is one of the most well-planned FX frauds in South Africa’s history, and there are many more.

In this instance, Willi Breedt, the CEO of now-defunct Vaultage Solutions, reportedly defrauded many investors of over 227 million rands ($13.35 million) and fled to another country when things got sticky. The fraudster cut off all contact with his customers and went on vacation. After multiple investor complaints to the authorities, he was under criminal investigation and allegedly went into hiding. Breedt, according to local media reports, alleges his problems began in 2019 when the crypto market crashed.

However, the markets quickly rebounded, allowing him to recoup all of his losses.

Because the downturn was just one day long, all losses were recouped. But Breedt alleges the collapse bankrupted him and he fled to escape his clients. The following day, there was nothing in the account and Breedt was nowhere to be located.

Breedt’s activities have not amused the South African crypto community since they demonstrate untrustworthiness. Moreover, it has become so widespread in the nation that investors are used to it. Scamming is still rampant in South Africa, although investors are growing more careful.

They have been scammed so many times that they are stronger and more aware of scamming operations in the nation, making it difficult for fraudsters to make up any tale.