ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has again cautioned people regarding a surge in fraudulent investment schemes being promoted on social media platforms, including Facebook, Instagram, and WhatsApp.

These schemes are falsely presented as legitimate investment advisory services or training courses with the intent to deceive people into investing their money in these fraudulent schemes.

These scams often lure individuals by making false promises of extraordinary profits with minimal risk, offering so-called “insider tips” in exchange for membership fees or investment via the advertised platforms.

To appear credible, the fraudsters frequently misuse the names, images, and logos of well-known business professionals, reputable companies, SECP, and the Pakistan Stock Exchange.

Scammers lure individuals through ‘false promises’ of profits by offering ‘insider tips’

Since August 2024, the SECP has been issuing warnings and cautioning the people against these fake schemes. Additio­nal­­ly, a pop-up warning message has been deplo­yed on the SECP’s official website.

The SECP’s efforts are further supported by an awareness campaign launched by the Pakistan Stock Exchange.

To ensure a comprehensive and coordinated response, the SECP has informed key regulatory and law-enforcement agencies, including the Federal Investigation Age­n­­­cy (FIA), the Pakistan Telecom­munication Authority (PTA), and the State Bank of Pakistan (SBP) about these fake schemes.

These agencies are expected to take appropriate legal action aga­inst individuals and entities invol­ved in such fraudulent activities.

The SECP has also brought this matter to Meta’s attention, urging immediate steps to safeguard users in Pakistan and to preserve the integrity of its platforms.

The SECP has urged the people to remain vigilant and verify the authenticity of any investment scheme before committing any funds and the individuals should not share personal or financial information with unverified sources or through social media platforms to avoid falling victim to financial scams.

Published in Dawn, November 2nd, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Short-changed?
Updated 24 Nov, 2024

Short-changed?

As nations continue to argue, the international community must recognise that climate finance is not merely about numbers.
Overblown ‘threat’
24 Nov, 2024

Overblown ‘threat’

ON the eve of the PTI’s ‘do or die’ protest in the federal capital, there seemed to be little evidence of the...
Exclusive politics
24 Nov, 2024

Exclusive politics

THERE has been a gradual erasure of the voices of most marginalised groups from Pakistan’s mainstream political...
Counterterrorism plan
Updated 23 Nov, 2024

Counterterrorism plan

Lacunae in our counterterrorism efforts need to be plugged quickly.
Bullish stock market
23 Nov, 2024

Bullish stock market

NORMALLY, stock markets rise gradually. In recent months, however, Pakistan’s stock market has soared to one ...
Political misstep
Updated 23 Nov, 2024

Political misstep

To drag a critical ally like Saudi Arabia into unfounded conspiracies is detrimental to Pakistan’s foreign policy.