The Securities and Exchange Commission of Pakistan (SECP) has issued a stern warning to the public against investing through unlicensed online trading platforms, websites, and mobile apps that claim unrealistic returns on stocks or other financial products traded in local or international markets.
The SECP has received numerous complaints from licensed securities brokers and investors regarding fraudulent 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 fraudulent platforms are often promoted aggressively via social media, using deceptive tactics that promise high returns with minimal risk. They solicit investments through unverified mobile or web applications, frequently using links and interfaces designed to mimic legitimate trading platforms. To bolster credibility, they misuse names, logos, and images of well-known companies, industry professionals, and even regulatory bodies.
Such platforms typically display fabricated dashboards showing inflated account balances and profit figures, although no actual trading activity occurs. Initially, investors may withdraw small amounts to build trust, but this is followed by pressure to invest larger sums. If investors try to withdraw remaining funds or refuse further investments, access is blocked abruptly.
In Pakistan, trading securities and commodities is legally permitted only through SECP-licensed securities and futures market brokers. Authorized broker lists are publicly available on the websites of the Pakistan Stock Exchange and Pakistan Mercantile Exchange Limited.
The SECP actively identifies fraudulent platforms and reports associated bank accounts to the Federal Investigation Agency (FIA), Pakistan Telecommunication Authority (PTA), and State Bank of Pakistan (SBP) for appropriate action.
The public is strongly urged to avoid depositing funds or investing through any unlicensed entities or individuals offering unauthorized trading or investment services.
