Gauteng, KZN pyramid scheme hotbeds

The Reserve Bank said Gauteng and KwaZulu-Natal are the hardest hit provinces

The Reserve Bank said Gauteng and KwaZulu-Natal are the hardest hit provinces. Picture: sxc.hu

JOHANNESBURG - The South African Reserve Bank is working with other organisations to catch and prosecute people who run pyramid schemes, officials said on Thursday.

The bank said Gauteng and KwaZulu-Natal are the provinces with the most cases.

Scammers often target pensioners and people who get large sums of money through payouts.

The Reserve Bank's Hlengani Mathebula said millions of rand are lost through Ponzi scams.

"We investigated 15 schemes last year, not all of them are closed.

"Our issue is that any illegal activity that happens needs to be followed up."