The Securities and Exchange Commission of Pakistan (SECP) today issued a warning to the public about fraudulent loan schemes proliferating on social media platforms.
This alert follows the agency’s crackdown on unauthorized digital lending apps, revealing a shift in fraudulent activities to social media channels.
The SECP uncovered a series of sponsored ads on platforms like Facebook, falsely offering quick, interestfree loans. These ads misuse the names of reputable organizations to gain trust and lure individuals into paying upfront fees under various pretexts, or into sharing sensitive information. The perpetrators vanish after obtaining payments or information, without providing any loans.
In response, the SECP is actively collaborating with the Federal Investigation Agency and the Pakistan Telecommunication Authority to report these platforms and remove fraudulent ads. The public is urged to exercise caution, verify financial offers, and avoid sharing personal information with unverified sources. A list of SECPlicensed companies and approved loan apps is available on the SECP website for public reference.