Reserve Banks warns of investment scams

06:29 (GMT+2) Fri, 29 Jun 2012

The Reserve Bank says South Africans should take care when choosing investments that offer large returns within a short period.

Bank spokesperson, Hlengani Mathebula, says many of these lucrative options are scams and he has urged people to report suspected pyramid schemes to the police or the Central bank.

He says although there are several investigations underway into schemes in KwaZulu-Natal and Gauteng in particular, the central bank regards this as a national problem.

Mathebula says last year the Reserve Bank instituted 15 new investigations and is still continuing with a further 26.