The commission emphasized that these platforms are operating illegally and deceiving customers by promising large, risk-free returns on investments in stocks and other financial goods in both domestic and foreign markets. These fraudulent platforms, which make deceptive claims about risk-free investments and offer alluring incentives with guaranteed earnings, are heavily advertised on social media. In an attempt to trick people, the platforms often employ unreliable apps and websites that closely mimic genuine trading portals. Scammers behind these platforms frequently pose as licensed stocks and commodities traders, respectable organizations, professionals, finfluencers, senior government officials, and even regulatory agencies, according to the SECP. This is a concerning trend.
They pose as free advising, investment-guidance, or investment-tips providers, claiming to provide professional advice on how to make assured profits. The SECP cautions that in an effort to gain consumers’ trust, these sites regularly present phony dashboards with fictitious balances and earnings numbers. In order to give victims a sense of security, these platforms may even let limited withdrawals at first. However, when refund requests are made, the platform may then block the victims’ access and push them to invest more money. The SECP reminded the public that only brokers with SECP licenses are permitted to trade stocks and commodities in Pakistan. Investors must refrain from interacting with any person or platform that provides trading, advising, or investing services without the required SECP approval, the commission reaffirmed.
Additionally, the SECP recommended that investors check the official lists of licensed brokers on the SECP website, as well as the websites of the Pakistan Stock Exchange (PSX) and Pakistan Mercantile Exchange (PMEX), to confirm the legality of any trading platform or service. In order to prevent financial fraud, identity theft, and significant financial losses, the public is further advised not to provide personal or financial information with unidentified sources on social media or messaging apps.
