An investment scam that promised to usher in the digital era for stokvels has claimed financial victims across South Africa and as far afield as Swaziland, Lesotho and Zimbabwe.

Daily Maverick is in direct communication with investors - amounts invested range from less than R15,000 to more than R500,000 in several cases. The victims are mostly aged 30 to 50, with a high number of younger investors aged 2o to 30 and at least two pensioners.

Many are afraid to divulge their contact details as they have not yet told their families that they have lost their life savings in a scam.

Gerhard van Deventer, the head of enforcement at the Financial Sector Conduct Authority (FSCA) has cautioned that although the FSCA is investigating the matter, it has little room to take action as United African Stokvel was not a registered financial services provider. United African Stokvel was also not a member of the National Association of Stokvels after its application was rejected in July 2019.

While many investors are crying out for a refund of their capital, Van Deventer says the FSCA has not handed the matter over to the Asset Forfeiture Unit because there is no evidence of any material funds in the assets that are being investigated. All the money was paid via EFT or debit orders to a Nedbank account.

Cold comfort

While Nedbank did...