The Securities and Exchange Commission of Pakistan (SECP) has issued a warning to the public about the risks of investing through unlicensed online trading platforms, websites, and mobile applications that promise unrealistic returns on investment in stocks and other financial products. These platforms, both domestic and international, are being promoted through social media channels, offering high returns with minimal risk.
SECP has received complaints from licensed securities brokers and investors regarding platforms such as Interactive Brokers Group (IBKR), IGIL Securities Country, BMA Capital No. 108/BMAC Global Pro, WTIC World Top Investor Competition, and Aviva Securities, among others.
These platforms are attracting investors with fraudulent claims of high returns, soliciting investments through unverified mobile and web applications that appear to be legitimate trading platforms.
In order to appear credible, these fraudulent platforms misuse the names, logos, and images of reputable companies, professionals, and even regulatory authorities. They display fake dashboards showing false account balances and profit figures, while in reality, no actual trading or investment is occurring.
Initially, these platforms may allow investors to withdraw small profits, creating a sense of trust. However, this is often followed by pressure to invest larger sums. If additional funds are deposited or if an investor refuses to invest further or attempts to withdraw funds, access to their account is blocked.
The SECP reminds the public that trading in securities of listed companies and commodities in Pakistan can only be conducted through SECP-licensed securities and futures market brokers. A list of authorized brokers can be accessed through the websites of the Pakistan Stock Exchange and Pakistan Mercantile Exchange Limited.
SECP is working closely with the Federal Investigation Agency (FIA), the Pakistan Telecommunication Authority (PTA), and the State Bank of Pakistan (SBP) to report fraudulent platforms and their associated bank accounts for further action.
The public is urged not to deposit or invest funds with unlicensed entities or individuals offering unauthorized trading or investment services. Before committing to any financial arrangement, investors should verify the legitimacy of the platform or person involved. Additionally, individuals are advised against sharing personal or financial information with unverified sources on social media or messaging apps to avoid financial loss and identity theft.
