SECP Warns Public Against Unlicensed Online Trading Platforms Promising Unrealistic Profits
ISLAMABAD:The **Securities and Exchange Commission of Pakistan (SECP)** has issued a public warning urging citizens to avoid investing in unlicensed online trading platforms, websites, and mobile applications that promise **unrealistic profits with minimal risk**.
This advisory comes in response to an increasing number of complaints from **licensed securities brokers and investors** regarding the activities of fraudulent platforms. According to media reports, these **scam platforms are heavily promoted via social media**, using deceptive tactics to lure the public into investment traps.
The SECP stated that these fraudulent entities typically use **unverified mobile or web-based apps** to solicit investments. They often mimic legitimate trading platforms, misusing the **names, logos, and images** of reputable companies, professionals, and even regulatory authorities to appear credible.
These platforms display **fake dashboards** showing manipulated account balances and profit figures, while in reality, **no actual trading or investment activity** takes place. Initially, the scammers offer **quick returns on small investments** to gain trust, but later pressure users to invest larger sums. Once significant funds are deposited—or if a user refuses to invest further or requests a withdrawal—the platform **suddenly disappears or becomes inaccessible**.
The SECP reminded the public that in Pakistan, trading in listed securities and commodities is only permissible through **licensed brokers** registered with the SECP. Authorized broker lists can be accessed via the **Pakistan Stock Exchange (PSX)** and **Pakistan Mercantile Exchange (PMEX)** websites.
To combat fraud, SECP actively identifies and reports such platforms and the associated bank accounts to relevant authorities, including the **Federal Investigation Agency (FIA)**, **Pakistan Telecommunication Authority (PTA)**, and the **State Bank of Pakistan (SBP)** for immediate action.
The SECP has appealed to the public to **refrain from investing funds or sharing financial information** with any **unlicensed or unauthorized entities**. It also advised against sharing **personal or financial data** via unverified sources on social media or messaging apps, warning that such actions could result in **financial loss or identity theft**.
For verification and safe investing, SECP encourages individuals to consult its official website and contact only licensed financial service providers.
