Tag: financial scam

There are roughly 810,000 active stokvel groups consisting of over 11 million South Africans, collecting an estimated R50 billion annually. Nearly 40% of South Africa’s adult population are members of a stokvel. Recently there has been an increase in illegal pyramid schemes or Ponzi schemes, which continue to pop up around South Africa.

History, of course, tells us that Ponzi schemes and financial scams are nothing new. However, their sophistication in the online space and in a digitally connected world are tailor-made for casting a wider, global net that lures potential investors with promises of 20% or 30% returns – or, in one recent incident, interest of 7% a week.