SECP alerts investors to rising online trading fraud

December 09, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a fresh warning as fraudulent online trading platforms escalate their activity in the country, using fake dashboards, fabricated profit figures, and impersonated identities to lure investors into depositing funds.

According to the regulator, unlicensed websites, mobile applications, and social media based investment schemes are aggressively targeting the public with claims of guaranteed, risk-free returns in stocks, commodities, and international markets, according to the press release.

Many of these operations mimic legitimate trading interfaces, allow small initial withdrawals to build trust, and then block investor access once larger sums are deposited.

SECP noted a rise in platforms misusing the names of licensed securities brokers, commodities brokers, financial institutions, market professionals, finfluencers, senior government officials, and even regulatory bodies.

Several schemes also pose as free advisory or investment-tip services to attract first-time traders before directing them toward unauthorized trading links.

The regulator reiterated that securities and commodities trading in Pakistan can only be conducted through SECP-licensed brokers. Verified lists of authorized entities are available on the websites of the SECP, the Pakistan Stock Exchange, and the Pakistan Mercantile Exchange.

The public has been advised not to transfer funds to any unlicensed individual or platform and to verify all investment offers through official channels.

SECP also cautioned that sharing personal or financial information with unknown sources on social media or messaging apps could lead to identity theft, data misuse, and substantial financial losses.

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