Ntsika, a Witsie joined a jewellery investment scam, thinking she would scam the scammers, but had her bank account frozen.
- Investment scams depend on recruitment to prosper.
- Scammers use Telegram and WhatsApp to reach their target investors.
- Losing money is one of the many consequences of joining an investment scam.
After spending an entire day at the Wits Wartenweiler library on East Campus, desperately scrolling on Wits Library in search of academic papers relevant to her research, Lusanda Ntsika (22), a Wits postgraduate student finds herself cherishing and equally lamenting over the days she would make money from EF Jewellery, an online investment scheme. From referring people to join using her referral code, she was guaranteed a bonus pay of up to R300, without any mental labour.
When Ntsika joined EF Jewellery in August 2024, she invested R130, which allowed her to receive R10 each day for 30 days. By the end of the first month, she had made R300, R170 profit, that is 131% profit for doing absolutely nothing.
Ntsika met Christia (referred to as Tina), the group admin of the EF Jewellery WhatsApp group, through her friend, Sizwe Nhlapho, in May 2024. Nhlapho had been using EF and making large withdrawals. He was a team manager with 700 team members. These were people who joined using his referral link.
Nhlapho’s account had a balance of R386, 877.74, his records showed he had previously made withdrawals totalling R263, 620.00 and had assets in jewellery worth R114, 070.00. He was at the top of his game.
Ntsika knew EF Jewellery was an investment scam, from the overly big returns on small investments, and Nhlapho had been transparent regarding the nature of this investment.
The investment packages differed, with the maximum investment at the time of Ntsika’s joining being R5,500 for almost triple the return.
She made a couple of investments, withdrew all the money she invested upon maturity of investment, re-invested part of her profit, and would transfer the other part whenever she needed funds in her bank account.
Social media is fertile ground for digital scams
Scams have been going on for years. They come in different forms: physical and digital. Physical happens in person, and digital scams are modern-day scams on digital platforms, such as fake business websites and applications.
Digital scams reach more people in less time compared to physical scams, and they prove to be much safer for the scammers, as there are many ways to conceal their identities.
A report by FAnews, a South African financial services news platform, claims South Africa’s suspected digital fraud rates dropped from 9.0% in 2020 to 4.6% in 2024, which is currently below the global average of 5.4%.
However, an article released by Moonstone earlier this year, social media has “supercharged” investment scams. Platforms such as Telegram and WhatsApp are constantly used by scammers to reach their victims.
Many people who join investment scams that promise high, unrealistic returns are either desperate for money, poor people, or people like Ntsika, who know the financial risks of scams but join planning to exit before it collapses.
The risk of losing money is incredibly high in scams. It is almost always guaranteed you will lose money, but there is another less spoken of consequence of scams, and that is the bank freezing your accounts because of suspected fraudulent transactions.
Be prepared to lose your bank account because of a scam
Late July 2024, EF started having massive sales on jewellery. For example, a one-day investment of R1,680 promised a return of R5,880. People bought into these sales. The first week, people received their returns.
From the second week, Tina started making excuses about the system being down but urged people to keep taking advantage of the sale, so people kept investing. She even recommended that people earning less than R8,000 quit their jobs and focus on EF Jewellery.
Things got heated- money would grow on the app, yet members could not process withdrawals. Withdrawals were failing, every member’s EF jewellery app froze, and some members’ bank accounts were frozen for suspected fraud.
“The bank freezes accounts that receive untraceable transactions, ones receiving deposits from accounts under investigation for fraud and accounts that haven’t been making transactions for too long then suddenly receives large amounts of money,” said S’bonga Mhlongo, a bank consultant at Capitec.
“My account was frozen after processing R200 from my EF account into my bank account. When I went to the bank, I was told my transaction is untraceable, I should come back with a proof of payment from the person who made the deposit,” said Ntsika.
Scammers either give you a fake proof of payment or no proof of payment. When EF members requested proof of payments from Tina, she would tell them to go shout at the consultants, that would make them unfreeze their accounts, “she didn’t care,” said Ntsika.
The consultants kept telling the members with frozen accounts their accounts had been reported to the bank’s fraud department and investigations were taking place.
Fraud investigations can last for months, during which people’s salaries would be processed into blocked accounts.
Members began to sweat as they failed to process withdrawals weeks on end, with elevated frustrations as profits kept growing on the app with no means of accessing it.
Ntsika’s group had over 5000 members, and there were other groups. It was hard to know people’s professions in the group. Ntsika had managed to have six of her student friends join under her team and a couple of relatives.
If you have been scammed, the bank requires you to open a case at your nearest police station.
When you are suspected of fraud or the person who deposited money into your account is under fraud investigations with the bank, the bank needs an affidavit detailing where the payment came from.
“During the first month of my account being blocked, my allowance was deposited into a frozen account. I had to open another account with another bank while waiting for these investigations to end,” said Ntsika.
After weeks of group members expressing frustrations and anger towards Tina. Things reached boiling point – she changed their group settings to “admins only”, remaining the only person who can send messages in the group.
Many people are unaware there is no specific minimum amount that a bank flags for fraud. Even a small amount like R200, once the bank suspects a fraudulent activity in your account, they will block it.
Investigations on Ntsika’s account lasted for a full year. After months of being sent from pillar to post, her account was unfrozen in August 2025.
Ntsika blames herself for joining an investment scam. She thought she was going to scam the scammers but ended up in debt for a couple of months because of a blocked bank account. Surely, you will think twice before joining an investment scheme from now on.
FEATURED IMAGE: A picture of a blocked bank card. Photo: Lulah Mapiye
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