Beware of appointment setting scams targeting brokers
Brokers and financial advisers beware. There are individuals out there who will do anything to fleece you out of your hard-earned cash, including making false representations about appointment setting, leads, and lists that will help you to write more business.
Fake appointments and books of business
Earlier this week an FAnews reader reached out to us to warn you about an individual masquerading as an ‘appointment setter’.
This individual, whom we’ll refer to as Ms Leads, is selling appointments, offering short-term insurance and lump sum books of business, and claiming to represent retired advisers looking to sell their portfolios. Ms Leads goes by various names including Sads Sads, SM Marketing, and Sadia Rum, the latter boasting a LinkedIn profile with over 500 adviser contacts.
The modus operandi is to reach out to brokers and financial advisers using professional social media platforms like LinkedIn and WhatsApp groups. Our reader was introduced to Ms Leads by a colleague and offers the following detailed explainer of what followed.
Advance fee scam targeting brokers
“As a new, independent broker seeking leads, I reached out to Ms Leads to purchase appointments. She required a minimum purchase of five appointments to begin. Trusting her legitimacy, as colleagues of mine were also dealing with her, I purchased one set of appointments including the promise that one of these appointments was with an employer group of around 140 employees interested in medical aid.
“As soon as I expressed interest in purchasing the appointments, Ms Leads reached out with another offer. This time, she contacted me via WhatsApp offering a short-term book. I spoke to her over the phone, shared my background and challenges, and explained how this opportunity could help me establish myself. She offered an Old Mutual and Santam book for sale, but due to my limited finances and lack of experience with such transactions, I agreed to purchase the Old Mutual book only, paying an initial R3000.”
Unfortunately, once our reader took the bait, Ms Leads set out to maximise her return. Our reader explained further: “Ms Leads then claimed that the selling adviser required a bulk transfer of all his books, and that I would lose my R3000 unless I purchased the remaining book. I reluctantly paid a total of R10000 (R2500 for appointments and R7500 for the two books). The employer group appointment never materialised, and I received no further leads despite repeated follow-ups. Ms Leads also ignored my request for a refund and eventually threatened to ‘make sure I lose my codes’ when I threatened to expose her.”
Trusted brands and manufactured urgency
This type of scam falls into a broader category of book purchase and lead generation fraud, an emerging threat in the financial and risk advice sectors. Scammers capitalise on the legitimate need for client acquisition by misrepresenting themselves as agents for retiring advisers or as an access points to ‘warm’ leads. They often make vague references to well-known insurance and investment brands to build trust alongside the tried-and-tested ‘manufactured urgency’ to convince less experienced advisers to pay up quickly.
The deception works because it mirrors real-world practice. It is not unusual for advisers to buy books of business or to engage appointment setters to accelerate their growth. But scammers exploit the absence of due diligence in these informal deals. If you are not checking contracts, verifying financial service providers (FSP) credentials, or speaking to the supposed seller directly, you could be the next victim. Always pause, ask for references, and seek independent verification before transferring any money. PS, the threat of exposing the adviser is a new one, and your writer fully appreciates the emotional strain this would place on an adviser or representative.
Requests for ‘cash send’ should set off alarms
Ms Leads has been busy. FAnews has heard of other brokers that have parted with thousands of rand for similar promises. In one case, an adviser paid approximately R34000 for the promise of a lump sum and short-term book combo, without receiving any value. In another, an adviser lost about R50000 after coming into contact with Ms Leads via a WhatsApp group. Ms Leads accepts payments via cash send, claiming her bank account is overdrawn, though some have made transfers to a Tyme Bank account.
As is often the case, you start doing broader due diligence after suffering this loss. In this case, there were a couple of LinkedIn posts that warned against accepting invites or engaging in any business with the aforementioned pseudonyms. The most compelling advice: “Please save yourself the pain, and do not interact with Ms Leads.” Combatting this type of fraud is difficult, especially for smaller brokerages and financial advice practices.
According to our reader, they contacted an investigator with an aim to building a case, but the cost of pursuing this would quickly exceed the amounts already lost. The only sensible route is to raise awareness of the issue and prevent other intermediaries from falling for the scam. So, once again. Brokers beware. Ms Leads and others like her are actively scamming you daily.
An abundance of crime and fraud
On the same day as our reader reached out, FAnews received no fewer than four warnings from the Financial Sector Conduct Authority (FSCA). In each case, scamsters were using social media to entice consumers to part with their hard-earned cash. There were subtle differences in the pitches, but the scams were consistent in using social media to maximise reach, and using well-known financial services brands to provide trust and con victims into believing they were dealing with a known entity.
In one of these letters, the Authority warned the public against doing any financial services business with persons using a WhatsApp account branded ‘Stanlib WhatsApp Investment Group’ and an individual named Mzwandile Ngcobo with WhatsApp account (069-162-7744) who falsely claims to be associated with that brand. It turns out these WhatsApp accounts have no association with the company.
If you are in any doubt about an opportunity being marketed via Facebook, LinkedIn, WhatsApp or elsewhere, you should at the very least check whether the entity or individual is authorised to provide a specific financial product, financial service or financial advice. Contact the FSCA on the toll-free number 0800-110-443, or visit the FSCA website to conduct an online search for authorised financial institutions.
Writer’s thoughts:
Brokers and financial adviser are being exposed to dozens of scams dressed up as legitimate growth or lead generation opportunities. Have you or someone you know been offered books of business or lead appointments by a stranger on Facebook, LinkedIn, or WhatsApp? Please comment below, interact with us on X at @fanews_online or email us your thoughts [email protected].
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