Misleading Narratives and Sensational Claims: The Flawed Logic Behind the Banxso Scandal Story
Explore the troubling allegations against Banxso in the wake of a Moneyweb article, as we dissect the evidence—or lack thereof—behind sensational claims and the potential consequences for media integrity.
The recent Moneyweb article titled 'Banxso refund scam escalates into sexual blackmail: Victim speaks out' presents a harrowing tale of digital manipulation and emotional trauma. However, while the human impact of such crimes deserves sympathy, the article makes a significant leap — suggesting, without hard evidence, that Banxso is somehow connected or responsible for the actions of the criminal network behind this scam.
This inference rests almost entirely on an alleged use of the same email address once associated with Banxso, any further indicators as to how the perpetrators gained the victims confidence have not been shared within the article. That threadbare link forms the foundation for a serious public accusation, yet no concrete evidence is offered to support a claim of corporate wrongdoing.
'There's a big difference between a bad actor impersonating a platform and the platform being complicit,' noted a regulatory advisor familiar with South Africa's financial services licensing regime. 'From what I've seen, the story relies on implication, not investigation.
'By the article's very inferences the FSCA are guilty of running a WhatsApp scam not the victims of identity theft.'
This is in clear reference to an alert issued on the FSCA's (Financial Service Conduct Authority) social media pages a few weeks ago where they chastised the usage of an AI generated deep fake video impersonating their commissioner Mr. Unathi Kamlana to sell a trading tool called NBSG Securities or Nedbank Securities. The notice further highlights this is a scam and the use of logos and names is unauthorised.
Banxso has consistently denied any role in this or any other scam. Through its attorneys, Hanekom Attorneys, the company has reiterated that no data breach has occurred, and that no client data has been compromised or sold.
'Our client has not sold, shared, or otherwise disseminated client data to unauthorised third parties. Any suggestion to the contrary is false and defamatory… Further, our client has not experienced any confirmed data breach to date,' reads a formal letter submitted to the publication prior to release.
They further assert 'In the circumstances, whilst our client again unequivocally denies the allegations and reaffirms the robustness of its security protocols, we formally request that any future enquiries be submitted in a bona fide manner, clearly delineating new and verifiable information warranting a response. Failing which, our client reserves the right to decline any further engagement on the subject matter.'
Yet Moneyweb published the story — one in a string of articles targeting Banxso — while giving minimal weight to these denials. This raises questions about intent, especially given the timing of events.
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Daily Maverick
3 hours ago
- Daily Maverick
Online danger — social media predator targets and traffics SA teen
The advent of the internet has put predators into children's pockets, and many use a classic child sexual abuse playbook. With ease of access to children online, anonymity, the speed and intensity at which online relationships progress, secrecy, careful grooming and vicious, prolonged attacks on children's identity and belonging, the question is not how this crime occurred, but rather how many other children are affected whose stories we will never know? It's a parent's worst nightmare: the phone call warning that the 16-year-old boy who befriended your daughter online, who told her he was en route from the UK to visit her, is an adult man with international warrants out for his arrest. Worse, he was already in the country. The story reads like the script of a Hollywood movie – a teenage girl rescued minutes before she was sexually abused and trafficked out of the country. It's a narrative made more shocking because it didn't happen to a high-risk child from a vulnerable family. The victim was a normal South African teen from a middle-class home with loving and involved parents who had done everything possible to keep her safe. It isn't fiction. The advent of the internet has put predators into children's pockets, and many use an archetypal child sexual abuse playbook. Through ease of access to children online, the anonymity of online contact, the speed and intensity at which online relationships progress combined with secrecy, careful grooming, vicious and prolonged attacks on children's self-esteem while they are desperate for identity and belonging, and often with the support and financial backing of organised crime, 10 cases of online child sexual abuse and exploitation are reported to occur globally every second. Multinational investigation In September 2022, a combined team of homeland security, the Hawks and Interpol, along with anti-trafficking organisation Hope Risen were frantically working behind the scenes to keep UK citizen Adam Qasim Lucas Habib from abducting, raping and trafficking 15-year-old Sam*, the South African girl he had been corresponding with on Omegle, Snapchat and WhatsApp for more than a year, and who he was due to visit within days. Unbeknown to them though, Habib was already in the country. Always one step ahead, he booked into his hotel two days before the due date on the fake ticket he had sent to her parents. Without luggage, he warned the hotel staff not to disturb him and requested no room service. That night, he allegedly purchased the services of a 13-year-old prostitute, sold to him by her parents. On the other side of town, Sam, the only one who knew that he had arrived in the country early, began to implement her boyfriend's carefully constructed plan. For months she had sat with her parents practising drawing a beard and moustache on her face with make-up, covering her hair with a hoodie and expertly transforming herself into a young man. It was done in plain sight of her family, a seemingly innocent pastime to which they imbued no sinister meaning. Sam had also established a regular habit of going to the gym beneath the luxury apartment block where she lived with her parents and older brother. She'd usually be there for about an hour, more than enough time to meet the boy she was desperately in love with and disappear without a trace. On that fateful Thursday evening, she planned to meet Habib at the gym. It was the day before Habib's 'mother', a fake persona he had created to appease Sam's parents, had told them he was arriving in South Africa. When Sam's mom collected her from school, Sam asked if she would be home by 5pm because that was when she would be going to gym. None the wiser, it would have been an hour and a half before her parents realised she was missing, and by then she would have been long gone. But at the last minute the plan began to unravel. The catalyst was a chance conversation at an anti-trafficking convention held by South African authorities with their foreign counterparts the week that Habib arrived in the country. During supper on the final night of the conference, a South African agent mentioned that they had a live case in play where the suspect was a UK citizen. Alert to the potential threat, the UK agent did some digging on his return to the UK. It was he who discovered that Habib was not a child but an adult male in his late twenties, that he had been in juvenile detention in the UK, that he was wanted in both the UK and the US and, most concerningly, that he was already in South Africa. What followed was a frantic attempt to keep Sam safe, made harder because Sam did not think she was in danger. At the point at which her parents were notifying her school of a possible kidnap situation, staging an intervention with the senior Family Violence, Child Protection and Sexual Offences (FCS) investigating officer who threatened to arrest Sam for possession of child pornography if she did not hand over her device and passwords, and authorities were putting in plans to arrest Habib, Sam still believed that he was her 16-year-old boyfriend and that they were in love. Textbook grooming It was an illusion that Habib had carefully cultivated for more than a year. Sam was just 14 years old when she first tried Omegle. Like many others her age, her life had been railroaded by Covid, forcing her online and devolving her friendship groups and quest for belonging into the microcosms of online communities. She'd done the safety talk at school warning that Omegle, the now-defunct (but resurrected in multiple other applications) online video chat site that randomly paired users with other users from across the world was dangerous, attracting predators, and infamous for close-ups of masturbating men and couples having sex on camera. But her friends were all on Omegle and peer pressure and curiosity finally won over caution. Given all the warnings, she felt like she had hit the jackpot when Omegle paired her with Adam Habib, a handsome 16-year-old boy from the UK. Nevertheless, she felt uncomfortable on the site and begged him to move across to Snapchat instead. When he was finally persuaded, the price he extracted was for her to stick out her tongue on camera. Innocent as she was, she had no idea that he had a tongue fetish or that after his camera suddenly went dark, the sound she could hear was him masturbating. Little is known about the first six months of their relationship but it seems that he was initially very attentive and romantic. He used affirmation and gifts to break down her barriers, including the airtime that enabled her to speak to him late at night, concealing her activities by placing a bathroom towel at the threshold of her door to block the light, and listening closely to the footsteps down the hall. As her parents attest, she became an expert at hiding her secret online habit and at identifying which parent was coming down the passage while she was speaking to Habib. But slowly the relationship began to deteriorate. Using a textbook grooming playbook, Habib moved from meeting an important need in Sam's life, and flooding her with gifts and compliments, to control, isolation and abuse. He alienated her from her family, keeping her up until all hours so she was perpetually exhausted, tearful and not coping at school. He gained access to all of her social media accounts and passwords to keep track of her relationships and movements, and began grooming her friends. Then, after he had extracted a promise that she 'would never speak to other boys', he hacked one of her male friend's accounts. When she innocently messaged the friend, Habib revealed that it was him using the account and accused her of cheating. He began punishing her. The conversations became more and more abusive. Gone were the romantic words. Instead he bullied and body-shamed her, mocking her body and face and calling her a slut, a whore and 'only good for the streets', gradually chipping away at her self-esteem. Months later when her anxious father hacked her Snapchat account he came across a tirade of misogynistic abuse. When he asked Sam why she allowed Habib to speak to her like that, she said that she deserved it because of her unfaithfulness. At the same time, the exchanges became more and more sexual. Habib explained in explicit detail what he would like to do with her when they finally met, sent her pornographic images and made her masturbate and perform oral sex and anal sex on herself using a hairbrush while he watched and masturbated. His conversations with this 14-year-old-child, which included references to oral and anal sex, orgasms, his tongue fetish, tying her up, raping her like 'a bad little slut' and taking her virginity whether she consented or not, were so graphic and so vulgar that his advocate refused to read them into record during the trial. He also manipulated her into sexting and sending him nudes. It was at this point that Sam finally confessed to her mother that she had 'done something' and that she was worried. 'I met a boy' Sam's parents, Rob and Linda*, had been concerned about Sam's behaviour for months, as she had become more withdrawn, anxious and angry. Arguments with her mom, who had previously been her confidant, had increased, and she was tearful and exhausted. But, they had attributed her changed behaviour to her being a teen, so her confession took Linda by surprise. Trying to remain calm, Linda asked her what she had done and how bad she thought it was. She ascertained that Sam had met 'a boy' online and sent him naked pics of her torso. Sam said that they were in love but also that he was being nasty and had made her cry. When Sam's parents asked her why she accepted the belittling, she told them that 'relationships online are different'. They tried to prove it wasn't normal, but she'd push them out of her room when she was talking to Habib, and wouldn't let them speak to him. Nevertheless, she'd often end conversations in tears and then regret her transparency. When Habib chatted to Sam live he used an emoji filter to mask his identity so Rob and Linda were increasingly convinced that he was a 'catfish'. Worried that he may be a jihadist or an extortionist, Rob began digging, but could find nothing on him. Then in Easter 2022, when the family planned a trip away, Sam insisted she wouldn't go. At the last minute, one of Sam's friends tipped off Rob and Linda that Habib was in the country and Sam was planning to travel to meet him at his hotel while they were away. Horrified, Rob drove her to Montecasino to find him. When his accommodation details proved to be false, they took it as proof that he didn't exist and that their nightmare was over. Their euphoria was short-lived though. Hours later he sent Sam a picture of himself standing next to the Easter Bunny at the Pick n Pay downstairs from their apartment. Suddenly, he was not only real but a stone's throw away from their daughter. Defying the advice of a top social media attorney to 'lock her up for six months and take away her phone', and in a bid to not lose Sam, the family staked him out and then let Habib and Sam meet in public places under supervision. It was clear almost immediately that something wasn't right. On two occasions when Habib (who concealed his age) was with Sam, older patrons flagged his behaviour, confronting him about the way he spoke to her and his unwillingness to accept her turning down his advances. Frustrated at not being alone with Sam, Habib extended his trip, explaining that his family was waiting for him in Cape Town. Before he left, he begged Sam's mom to let the two of them spend time on their own. It was a request Sam's parents adamantly refused. In the months that followed, Habib redoubled his efforts to meet Sam alone. He even created a mother persona who did her best to persuade Rob and Linda that the children were in love and that they would be bad parents if they stood in the way. Habib's 'mother' had a 30-minute video call with Rob and Linda, begging them to allow Habib to visit again. They finally agreed to let him come in September 2022. It was here that Habib's plan went wrong. His 'mother' inadvertently disclosed to Linda that she had never been to Cape Town, undermining his story that his parents had been with him in South Africa. 'She' further agreed to send through a copy of his passport. Although the date of birth and ID number were blanked out, the barcode was still visible, which was how authorities were finally able to uncover his age, record and movements. The family were also given the contact details of Tabitha Lage from Hope Risen. Lage described how during her first meeting with Sam, the two of them sat in silence for a whole hour as Sam angrily refused to speak to her. But then the floodgates opened. At Lage's behest, Sam persuaded Habib to move their conversation to WhatsApp which allowed the family to capture evidence (the final three months of their relationship alone produced 2,596 pages of WhatsApps). This had been impossible on Snapchat because of the disappearing messages, and because Habib received notifications when their messages were screenshotted, sending him into an apoplectic rage. No remorse By the time September and the planned second visit arrived, Sam was exhausted from sleepless nights, overwrought from the ongoing barrage of vitriol and abuse, failing at school, and worn down, with her self-esteem in tatters. She would later confess that she felt like it was too late to turn back. Everything was poised for what could have been the day she was trafficked. But then came the police breakthrough, the confiscation of her phone and the intervention that had her in a conference room with the FCS unit of the police, rather than at the gym ready to meet Habib. Instead of feeling grateful though, Sam was devastated. The following day, as she sat with her relieved parents in a restaurant downstairs from their apartment watching the Springboks play rugby, she became more and more anxious until at half-time Rob decided they should leave. Minutes later, his phone began to ping as the restaurant manager, who knew the family well, and who had been given Habib's picture, alerted him that Habib was metres away from their apartment, retracing his steps from the March visit in a frenzied attempt to find Sam. Although he came terrifyingly close to tracking her down, it proved to be his undoing. Even after his arrest, he still had a hold over Sam. Managing to contact her while in prison, he threatened to punish Lage and Sam's parents. She was so certain that he would harm them that she begged him to rather kill her than hurt them. At trial, he showed no remorse or recognition that he had done anything wrong. Finally, more than two years after his arrest, Adam Qasim Lucas Habib was found guilty of human trafficking, production and possession of child pornography, grooming, compelled self-sexual assault, compelling a child to witness sexual offences, flashing and sexual assault. On 4 March 2025, he was sentenced to an effective 40 years in prison. Having already served three, he is facing another 13 years of incarceration. The Johannesburg High Court judgment was landmark because it reinforced that the Trafficking in Persons (TiP) Act doesn't require children to be moved in order for them to be trafficked. Judge Coertse provided a thorough breakdown of the Act, showing that if any of the following criteria were fulfilled, it would constitute trafficking: 'any person who delivers, recruits, transports, transfers, harbours, sells, exchanges, leases or receives another person.' He agreed that the prosecutor had proven that Sam was recruited for sexual exploitation. The judge further explained that Habib had used an 'abuse of vulnerability' to recruit her, leading her to believe that she had no other option than to submit to exploitation. But despite the victory in court, Sam, just months away from becoming an adult, has been significantly scarred by her experience. Captain Botha from the FCS unit testified at Habib's trial that Sam had suffered from child sexual abuse syndrome, presenting with the five classic signs of secrecy, helplessness, entrapment and accommodation, delayed, conflicting and unconvincing disclosure, and retraction. Habib's grooming, which isolated her, met a felt need, created a shared secret, sexualised their relationship and then wore her down through cruelty and control, had altered her self-perception, evident in the way she continued to love and support him despite what he had done – according to Lage, a form of Stockholm syndrome. Educating children While Sam's experience is unique, it is not uncommon. According to Childlight, more than 300 million children are victims of online child sexual abuse and exploitation every year. Prevention requires tech companies to place children's wellbeing over profit and for governments to use legislation to prohibit or at least delay children from accessing harmful platforms including social media and gaming platforms where predators can access them. For worried parents, the changes are coming too slowly. In response, many are delaying access to devices, something Sam endorses for her future children. In addition, educating children about grooming and online exploitation, and keeping open lines of communication wherever possible, are key to safety because even when authorities and families successfully collaborate to protect a child, there are no fairytale endings in child sexual abuse cases. For Sam and her family, healing and recovery may be a long and painful journey. One in eight children has been affected by online solicitation. If you or a family member have been affected by online child sexual abuse and exploitation, contact Childline for assistance on 116. If you want to report an electronic crime, contact Crime Stop on 086 000 10111 and ask to speak to the Serial Electronic Crime (SECI) Unit. Concerned parents who want to delay access to smart devices can join the Smartphone Free Childhood movement. For more information about how this crime affects South African children and the legislative reforms needed to keep our children safer, read ''. DM
IOL News
3 hours ago
- IOL News
NPA Hit with Massive Legal Bill After Botched Banxso Case
Taxpayers left to foot nearly R500,000 after prosecutors' failed funds grab backfires in court. Image: IOL / Ron AI The National Prosecuting Authority has been ordered to pay a costs order approaching half a million rand after their attempt to freeze Banxso's funds collapsed on appeal, leaving South African taxpayers to shoulder the financial burden of what legal experts describe as a fundamentally flawed strategy. The costly legal defeat began when the NPA secured what appeared to be a straightforward victory through an ex parte application. This legal procedure allows only one party to present their case to the court without the opposing side being present or having an opportunity to respond. "Ex parte applications are supposed to be reserved for genuine emergencies where there's a real risk of assets disappearing overnight," explained a senior legal practitioner. "The fact that this preservation order was successfully overturned on appeal suggests the original application may not have met the stringent requirements for such urgent relief." Banxso successfully challenged the preservation order through a Reconsideration Application, resulting in the court not only overturning the original ruling but imposing substantial legal costs on the NPA. Liquidation Proceedings Present Far Greater Risk The NPA's financial setback, whilst significant, represents only a fraction of the potential costs exposure facing applicants in the ongoing liquidation proceedings. The main liquidation case, which has been progressing through the courts since October 2024, involves substantially more complex legal issues and protracted hearings. Judge Le Grange heard the liquidation application in early May, but judgment remains pending. Legal sources suggest the extended timeline and complexity of liquidation proceedings could result in costs orders exponentially higher than the NPA's bill. "When you're dealing with liquidation applications of this magnitude, costs can spiral very quickly," said a liquidation expert with extensive experience in commercial insolvencies. "The NPA matter was relatively straightforward compared to what we're seeing in liquidation proceedings. If that resulted in costs approaching R500,000, we could be looking at exposure running into tens of millions for the main case." The expert noted that liquidation proceedings typically involve multiple postponements, extensive documentation, and lengthy court hearings—all factors that contribute to escalating legal costs. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Strategic Legal Positioning Banxso has requested that the court grant a de bonis propriis order against Mostert and Bosman Attorneys. This legal mechanism would make the attorneys personally liable for costs rather than their clients bearing the financial burden. "A de bonis propriis order is a serious remedy that courts don't grant lightly," the legal source explained. "It essentially means the lawyers would pay costs out of their own pockets. Courts typically only make such orders where there's evidence of improper conduct or where attorneys are seen to be the real driving force behind litigation." Banxso has consistently maintained that the applicants are being used by their legal representatives, who allegedly stand to benefit financially from liquidation proceedings regardless of the outcome for creditors. This argument gained judicial attention when Judge Le Grange questioned why the applicants would reject Banxso's offer of security for their claims in favour of pursuing liquidation proceedings that would yield only 15 to 50 cents on the rand in the best-case scenario. Section 381 Implications During proceedings, Advocate Rudi van Rooyen, representing the applicants, referenced the possibility of a section 381 application. This provision would allow provisional liquidators to apply for extended powers equivalent to those of finally appointed liquidators, including authority to institute commissions of enquiry and appoint expensive legal teams. "Section 381 applications can dramatically increase costs because they essentially give liquidators carte blanche to investigate and litigate using the company's own funds," the liquidation expert noted. "It's a powerful tool, but it can also be expensive for all concerned." Judge Le Grange observed that such an application would effectively allow Banxso's money to be used to fund litigation against the company itself, reinforcing Banxso's argument that liquidation primarily benefits attorneys and liquidators rather than creditors. Financial Consequences Mount The NPA's substantial costs order will be paid from government coffers, adding to taxpayers' financial burden. The failed preservation strategy has resulted in the state bearing the cost of unsuccessful litigation whilst achieving none of its intended objectives. Meanwhile, the applicants in the liquidation matter face potential personal liability for costs that could exceed the NPA's financial exposure by significant margins. Industry observers note that liquidation proceedings involving Mostert and Bosman have previously resulted in substantial legal fees being deducted from creditor payouts. "The pattern we've seen in previous matters suggests that legal costs can consume a significant portion of available funds," the liquidation expert observed. "Creditors often end up receiving much less than anticipated because of the fees involved in the liquidation process." Financial disclosures from the Mirror Trading International liquidation revealed that Mostert and Bosman had levied legal costs exceeding R24 million by September 2023, with creditors still awaiting dividend payments and a second Liquidation and Distribution account remaining unpublished. Pending Judgment The contrast between the NPA's failed strategy and Banxso's defensive approach has become increasingly apparent. Whilst the state prosecution authority faces a substantial costs order for unsuccessful litigation, Banxso continues defending its position and seeking to protect client interests through the judicial process. As the legal community awaits Judge Le Grange's judgement, the NPA's costly defeat stands as a stark reminder of the financial consequences when aggressive legal strategies backfire in the commercial courts.
The South African
4 hours ago
- The South African
Government condemns Riverlea shootout linked to illegal mining
A tragic shootout between illegal miners and the South African Police Service (SAPS) in Riverlea, Johannesburg, has left a 59-year-old man dead, prompting national condemnation and calls for stronger community collaboration in tackling criminal activity. Police reportedly exchanged gunfire with three suspects at the Zamimpilo informal settlement when the man was caught in the crossfire and killed. His body was discovered in the early hours of Wednesday morning. The South African government has extended condolences to the victim's family and pledged its support for ongoing investigations. 'This incident demonstrates the severe threat that illegal mining poses, not only to law enforcement, but to the safety and well-being of communities,' said Acting Government spokesperson Nomonde Mnukwa. Mnukwa called on community members to avoid taking the law into their own hands and instead work with police to address criminality. 'Community members are called to cooperate with authorities and report criminal activities taking place in their areas,' she said. Illegal mining, often associated with heavily armed syndicates, has plagued several parts of Johannesburg, including Riverlea. The violence accompanying these operations has frequently drawn attention from authorities and residents, with infrastructure damage and community safety being constant concerns. Residents in Riverlea have previously complained about the dangers posed by illegal miners, known locally as zama zamas, who operate in abandoned mines and informal settlements with minimal regard for public safety. Furthermore, law enforcement continues to intensify efforts to disrupt illegal mining networks in Johannesburg and beyond. The government has praised these efforts and reaffirmed its stance on maintaining order. 'Government commends the ongoing efforts by law enforcement to clamp down on illegal mining operations, which continue to pose serious threats to public safety and infrastructure,' Mnukwa added. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
