ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has warned the public about the increasing scams by unlicensed online trading platforms, websites, and mobile applications.
As per details, the authority said that these platforms, which often promise high, risk-free returns on investments in stocks and other financial products in local and international markets, are operating illegally and misleading users.
The warning issued by the SECP stated that fraudulent platforms are aggressively promoted on social media, offering attractive incentives with guaranteed profits and making false claims of risk-free investments.
The online trading platforms heavily rely on apps and websites that are unverified, closely resemble legitimate trading portals, to deceive users.
According to the SECP, in a disturbing trend, scammers behind these platforms often impersonate licensed securities and commodities brokers, reputable institutions, professionals, finfluencers, senior government officials, and even regulatory bodies.
They claim to offer expert recommendations to earn guaranteed profits in the guise of free investment tips, advisory, or investment guidance providers.
The SECP warns that these platforms frequently display fabricated dashboards showing fake balances and profit figures to build trust among users.
These platforms may even allow small withdrawals early on to create a sense of security, only to later encourage victims to invest more funds before blocking their access to the platform when refund requests are made.
The SECP also reminded the public that securities and commodities trading in Pakistan can only legally be conducted through SECP-licensed brokers. The commission reiterated that investors must avoid engaging with any individual or platform offering trading, advisory, or investment services without the necessary SECP approval.
Furthermore, the SECP urged investors to verify the legitimacy of any trading platform or service by consulting the official listings of licensed brokers available on the SECP’s website, as well as the Pakistan Stock Exchange (PSX) and the Pakistan Mercantile Exchange (PMEX) websites.
People online were further cautioned against sharing personal or financial information with unknown sources on social media or messaging applications, as it may lead to financial fraud, identity theft, and serious monetary losses.
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