WATCH: Association warns of WhatsApp stokvel

Who doesn't want to make a quick buck? But the National Stokvel Association of SA is warning that WhatsApp stokvels are more likely to be pyramid schemes than genuine savings vehicles. Courtesy #DStv403

JOHANNESBURG - The National Stokvel Association of South Africa (Nasasa) is warning that WhatsApp stokvels are more likely to be pyramid schemes than genuine savings vehicles.

WhatsApp messages doing the rounds are encouraging people to invest in a stokvel for R200 and get R1,000 back.

READ: How cryptocurrency scams work

Nasasa chairperson Andrew Lukhele said trust is important to forming stokvels.

“If you join an existing stokvel, chances are that you need to be recommended by someone to be a member so I can't join a stokvel in Germiston of people I don't know,” said Lukhele.

“So all these characteristics that I have highlighted are absent in the WhatsApp stokvel. So the people who contributed, the depositors are faceless. The people recruiting the people are also faceless, so how sustainable can this be?”

Source
eNCA