The Financial Sector Conduct Authority (FSCA) of South Africa has raised the alarm over a sophisticated deepfake investment scam that is leveraging the images and voice of one of the country’s wealthiest businessmen, Dr Patrice Motsepe. In a troubling announcement, the regulator revealed that false videos featuring a clone of the billionaire entrepreneur have emerged on social media, enticing members of the public with promises of excessive returns.
The fraudulent operation centres around fictitious companies named Gold Earnings and Africa Gold. According to the FSCA, these entities are enticing victims with the prospect of “unrealistic returns” that can reach as high as 46% on investments as low as R2,000 up to R100,000. The troubling trend not only exploits Motsepe’s esteemed reputation but also raises serious concerns regarding the growing prevalence of deepfake technology in fraud.
In one of the deepfake videos circulating online, the simulated voice of Dr Motsepe asserts that “anyone can earn on the platform with a minimum investment of R4,700”. The FSCA’s investigation underscores the urgency needed to tackle these deceptive practices, particularly as they can be perceived as credible given the public’s trust in established business figures.
To combat the misinformation, African Rainbow Minerals (ARM), Dr Motsepe’s business, has confirmed to the public that it has no affiliation with either Gold Earnings or Africa Gold. The company has categorically denied any involvement and joined the FSCA in condemning these fraudulent actions. ARM and Dr Motsepe are reportedly weighing their options for civil and/or criminal action against the perpetrators of this scam.
As technology advances, the threat posed by deepfakes continues to grow, creating a pressing need for vigilance among the public. Experts advise investors to remain cautious, scrutinising any investment opportunities that promise returns which seem too good to be true, particularly when they are associated with the likeness of reputable individuals.