SECP alerts the public to fraudulent investment schemes and internet trading platforms.

The public is advised by the Securities and Exchange Commission of Pakistan (SECP) not to invest in stocks or other financial products that are traded on domestic or foreign securities markets through unlicensed online trading platforms, websites, or mobile applications that promise exaggerated returns.

The SECP has received complaints from licensed securities brokers and investors against platforms, such as, Interactive Brokers Group (IBKR), IGIL Securities Country, BMA Capital No.108/BMAC Global Pro, WTIC World Top Investor Competition, Aviva Securities, among others, said a press release issued here on Thursday.

Social media is being used to advertise these fraudulent platforms, which lure people in with false promises of large profits and low risk.

They solicit investments through unverified mobile or web-based applications, using links that appear to represent legitimate trading platforms. They commonly use the names, logos, and photos of respectable businesses, professionals, and even government agencies in an attempt to look legitimate. These platforms display fake dashboards showing false account balances and profit figures, while in reality no actual trading or investment is taking place. Initially, investors may be allowed to withdraw small profits to build trust; however, this is typically followed by pressure to invest larger amounts. Once additional funds are deposited or if an investor refuses to invest further or attempts to withdraw remaining funds access is suddenly blocked.

Only securities and futures market brokers regulated by the SECP are permitted to trade in commodities and listed company shares in Pakistan.

The websites of the Pakistan Stock Exchange and Pakistan Mercantile Exchange Limited provide access to the names of approved brokers.

Any such platforms and associated bank accounts identified by SECP as being used by fraudsters are being promptly reported to FIA, PTA and the State Bank of Pakistan (SBP) for appropriate action.

The general public is advised not to deposit money or make investments with any unregistered organisations or people who provide unapproved trading or investment services. Before committing to any financial arrangement, investors must confirm the legitimacy of the platform or person involved.

Individuals are also strongly advised not to share any personal or financial information with unverified sources on social media or messaging apps, as doing so may expose them to financial loss and identity theft.