South African Police arrested six alleged bogus investment scammers along with 25 call centre agents on Tuesday in a coordinated operation targeting an international fraud syndicate, law enforcement officials said.
The suspects, aged between 38 and 61, were arrested in Johannesburg, Gauteng, for contravening the Financial Advisory and Intermediary Services Act (FAIS Act) 37 of 2002.
The arrests followed a joint takedown operation involving the Gauteng Hawks’ Serious Commercial Crime Investigation, Hawks’ Priority Crime Specialised Investigation, Hawks’ Tactical Operations Management Section, the Gauteng Tactical Response Team, Hawks Legal Services and Hawks Communication Services. They were supported by Gauteng Crime Intelligence, the Gauteng Local Criminal Record Centre, SARS Forensic Investigation, INTERPOL, the South African Banking Risk Information Centre, and representatives from Standard Bank and First National Bank.
INTERPOL’s International Public Sector Group, based in Lyon, France, deployed a senior representative from its International Financial Crimes and Anti-Corruption Directorate as part of Operation JACKAL, a global initiative aimed at combating online scams and transnational financial crimes.
According to investigators, the case stems from an inquiry launched in 2022 by the Gauteng Hawks’ Serious Commercial Crime Investigation team. The investigation was triggered by statements from 43 victims in Australia, which enabled the Directorate for Priority Crime Investigation, working with INTERPOL and international law-enforcement partners, to mount a coordinated operation.
Authorities allege that the syndicates advertised bogus investment opportunities on social-media platforms, deliberately targeting individuals nearing retirement age who held substantial savings and were seeking growth and preservation of their funds.
Investigators say the suspects operated so-called “boiler-room” call centres, using call-centre agents to communicate with victims online. Victims were initially persuaded to make small online investments that falsely reflected high returns. Communication would then continue via platforms including Skype, Messenger, Zoom and WhatsApp, until victims were convinced to invest significantly larger sums.
The alleged illegal activities were conducted from locations in both Gauteng and the Western Cape, officials said.
The criminal operations spanned several jurisdictions, with victims primarily identified in Australia, the United Kingdom, the United States, Canada and New Zealand.