The National Stokvel Association of SA (Nasasa) has warned people not to fall for the “quick buck” WhatsApp stokvels scam.
This after several WhatsApp groups have been targeting vulnerable people.
The scheme promises those entering the groups high returns by simply handing over R200.
“This thing looks like a pyramid scheme,” Andrew Lukhele, founder and chairperson of Nasasa said.
Lukhele said traditional stokvels were normally made up of a limited group of friends who come together to form an association.
He said there were regular meetings, with rules and regulations. The payout ratio was determined upfront.
“Everything is based on trust. In this instance, people come together and you don’t know who you are joining. It is a faceless operation, so what happens when the money disappears?
“Chances of this thing disappearing any time are there.”
Lukhele said fraudsters were using the popularity of stokvels to take advantage of gullible and vulnerable people.
“People will take chances and we can only warn people not to fall for things that have not been tested. Stokvels have been tried and tested for many years.”