The South Africa Financial Sector Conduct Authority (FSCA) issued a public warning urging consumers to exercise caution when dealing with El Chapo, after receiving information that it is soliciting ZAR 1,000 investments from the public by claiming to generate returns through a trading robot and later requesting additional payments to release those returns. The FSCA confirmed El Chapo is not authorised to provide financial services and did not respond to FSCA enquiries. The regulator advised the public not to accept financial advice, assistance or investment offers from unauthorised individuals or entities, and to verify a provider’s authorisation status and financial services provider (FSP) number through FSCA verification channels. It also highlighted common warning signs of potential scams, including promises of unrealistic returns, offers made via social media, upfront payment demands, requests for more money to recover investments, paid training requirements, pressure to act urgently, and vague product information. The FSCA encouraged the public to report suspicious activity through its ethics and fraud reporting mechanisms.
South Africa Financial Sector Conduct Authority 2025-10-17
South Africa Financial Sector Conduct Authority issues public warning that El Chapo is not authorised to provide financial services
The South Africa Financial Sector Conduct Authority (FSCA) warned against El Chapo, soliciting ZAR 1,000 investments with false promises of returns via a trading robot. El Chapo is not authorised to provide financial services, and the FSCA advises verifying a provider's authorisation status. The public is urged to report suspicious activities and be wary of common scam indicators like unrealistic returns and urgent payment demands.