The Financial Services Board (FSB) of South Africa has issued warnings against financial entities MadodaForex and Preve Consulting, which provide services within the country without having the required authorization. The two companies falsely claim to be licensed in South Africa, when neither is.
MadodaForex, trading via the website www.madodaforextrading.com, displays a fake certificate that it is an authorised forex trading agency in South Africa. Meanwhile, Preve Consulting, operating via www.preveconsulting.co.za, provides an authorization number, that actually belongs to FNB Securities, which has no business relationship with the fraudster.
The two entities have been targeting local residents and soliciting money in exchange for unrealistically high short-term interest rates. The regulator noted traders should be dealing with great caution with either of the two companies.
The FSB is the regulatory body of South Africa’s non-banking financial services industry, which, in addition to forex entities, includes retirement funds, short-term and long-term insurance, companies, funeral insurance, schemes, collective investment schemes (unit trusts and stock market) and financial advisors and brokers.