LJ Financial Solutions

As AI technology advances, scammers are using it to deceive individuals and carry out scams.

These scams might involve using AI-generated voice, video or text to impersonate trusted sources, like bank representatives or even family members, to trick them into giving up personal information or transferring funds.

In some cases, these scams can be incredibly sophisticated, leveraging deepfakes, voice synthesis, and automated chatbots to appear more legitimate. As a result, the losses can be substantial, and some victims may lose millions before realising they’ve been scammed.

The South African Banking Risk Information Centre (SABRIC) has urged the public to exercise extreme caution as banks report a significant rise in the involvement of bank customers in fraudulent investment schemes. These scams, which promise high returns with little to no risk, have already affected thousands of customers.

The financial watchdog has also urged people to be cautious when conducting financial services business with so called ‘investments companies’, and that people should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA.

Tips

Never rely solely on a video to make investment decisions

If you receive an investment pitch via video, try to contact the company or individual through a known, verified channel like a company website or a direct phone number

If you’re unsure, reach out to a trusted financial advisor to verify the legitimacy of the investment opportunity

Be wary of high-pressure tactics. Scammers often use urgency to pressure you into making quick decisions

Be cautious of what you share online. Most of us have an online and social media presence, but the photos, videos and information we share can be exploited. These resources can train deepfakes, which, once created and shared, are difficult to detect and remove

Use AI-powered email filters to detect suspicious emails, such as those that may come from unfamiliar domains or have signs of deepfake manipulation in them. This helps reduce the chances of individuals being tricked by scammers

Fake websites

Criminals create fake online stores that mimic legitimate retailers, offering unbelievable deals to attract shoppers. An example of this could be a fake online store that looks very similar to a popular retailer's website.The fraudulent site might have a domain name like 'bestsalesonline.shop' or 'discountdealsstore.com' and offer extremely low prices, advertising massive discounts like '70% off on all items'.

TIP
Always verify the website's URL, look for secure payment methods (like a padlock symbol), read reviews, and avoid deals that seem unrealistically good.

Beneficial Ownership reporting is no longer a procedural submission. It is a live compliance risk. Many entities filed Beneficial Ownership details reactively when the requirements were introduced. Few have reviewed whether those disclosures remain accurate and aligned with evolving tax and trust reporting.

What you need to know…

Information filed with CIPC for companies and trusts is shared and cross referenced with SARS and other regulatory authorities. The data is analysed, reconciled and compared against tax returns, distributions, related party transactions and third-party reporting. If your declarations are inaccurate, incomplete or misaligned with your tax filings, the discrepancy will not go unnoticed.

SARS is operating within a system driven, data integrated compliance environment. This means:

Ownership disclosures are matched to income tax returns
Trust IT3(t) submissions are compared to beneficiary declarations
Dividend and distribution records are reconciled against declared ownership
Banking and transactional data is cross checked
The margin for error has narrowed significantly. Incorrect Beneficial Ownership reporting can trigger:

Compliance notices
Automated penalties
Heightened audit selection risk
Scrutiny of related party transactions
Personal exposure for trustees and directors