SECP Warns Public About Fraudulent Trading Apps Impersonating Licensed Brokers

The Securities and Exchange Commission of Pakistan has issued a fresh warning advising the public to avoid unlicensed online trading platforms that impersonate genuine brokers and promise guaranteed, risk-free profits. The regulator said these fraudulent apps and websites continue to target investors through aggressive social media campaigns. According to SECP, illegal platforms often copy the identities of licensed securities brokers, commodities brokers, well-known institutions, financial influencers and even senior government officials to appear credible. Many of these apps use fake dashboards showing fabricated balances and profits to convince users that real trading is taking place. In some cases, early small withdrawals are allowed to build trust before the platform blocks users when they request refunds. The regulator said only SECP-licensed securities brokers and futures market brokers are legally allowed to offer trading services in Pakistan. Lists of all authorized brokers are available on the official websites of SECP, the Pakistan Stock Exchange and the Pakistan Mercantile Exchange, the regulator added. SECP urged the public not to deposit money with any unlicensed platform or individual offering trading, advisory or investment services. Investors are advised to verify all details using official SECP resources and the contact information listed by licensed brokers. The regulator also cautioned people against sharing personal or financial information with unknown sources on social media or messaging apps, warning that such interactions can lead to financial scams, identity theft and significant monetary loss.