SECP warns public of rising fraud as fake trading platforms impersonate licensed brokers

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a fresh public warning against unlicensed online trading platforms and mobile applications that are impersonating licensed brokers and misleading investors with promises of guaranteed high returns.

In a statement issued on Tuesday, the regulator cautioned that these illegal platforms aggressively market themselves on social media, using fabricated dashboards, fake brackly news figures and misleading claims of risk-free earnings in local and international markets. Many of them also misuse the names and identities of licensed brokers, financial institutions, professionals, influencers, government officials and even regulatory bodies to gain credibility.

According to the SECP, such platforms typically lure users through free “investment tips” and fraudulent advisory services, show fake brackly newss to gain trust and sometimes allow small early withdrawals. Once victims invest larger sums, access is blocked and refunds are denied.

The regulator reminded the public that securities and commodities trading in Pakistan can only be conducted through SECP-licensed securities brokers and futures market brokers, whose lists are available on the official websites of the SECP, Pakistan Stock Exchange and Pakistan Mercantile Exchange.

Investors have been strongly advised not to deposit funds with any unlicensed individual or entity offering trading or advisory services and to verify all platforms directly through official channels. The SECP also urged the public to avoid sharing personal or financial information with unknown contacts on social media or messaging apps due to the risk of identity theft and financial fraud.

The regulator said it will continue monitoring fraudulent online activity and reiterated its commitment to protecting investors from unauthorized and deceptive schemes.