SECP Alerts Public to Surge in Fraudulent Trading Platforms
APP
Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has issued a warning to the public about a rise in fraudulent investment schemes being promoted through social media platforms like Facebook, Instagram, and WhatsApp.
These schemes masquerade as legitimate investment advisory services or training courses aimed at deceiving individuals into investing their money.
The SECP’s press release stated that these scams often lure victims with false promises of high returns with minimal risk, offering “insider tips” in exchange for membership fees or investment. To gain credibility, fraudsters frequently misuse the names, images, and logos of reputable companies, well-known professionals, the SECP, and the Pakistan Stock Exchange.
Since August 2024, the SECP has been alerting the public about these fraudulent schemes and has deployed a warning pop-up on its official website. An awareness campaign is also underway in collaboration with the Pakistan Stock Exchange.
In response to the escalating issue, the SECP has escalated the matter to regulatory and law enforcement agencies, including the Federal Investigation Agency (FIA), the Pakistan Telecommunication Authority (PTA), and the State Bank of Pakistan (SBP), urging them to take legal action against the perpetrators.
The SECP has reached out to Meta, calling for immediate measures to protect users in Pakistan and maintain the integrity of its platforms.
The SECP emphasizes the importance of public vigilance, advising individuals to verify the authenticity of any investment opportunities and to avoid sharing personal or financial information with unverified sources on social media.