ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has issued public alert against fraudulent loan schemes promoted through social media.
Following the successful crackdown on 141 unauthorized digital lending apps through the coordinated efforts of relevant stakeholders, operators behind such schemes have now resorted to alternative channels, primarily social media to continue their fraudulent activities.
The SECP has observed sponsored advertisements on platforms such as Facebook, falsely offering quick, interest-free loans with minimal requirements. The names of reputable organizations are being fraudulently cited in these promotions to falsely project legitimacy and gain public trust.
These advertisements are being used to lure unsuspecting individuals into paying upfront charges under the guise of processing, registration, insurance, or account verification fees, or into sharing sensitive personal information. Once the payment or information is obtained, the scammers disappear without disbursing any loan.
The SECP is actively reporting such platforms to Federal Investigation Agency (FIA) and the Pakistan Telecommunication Authority (PTA) for action against those responsible and to ensure the prompt removal of such fraudulent advertisements from social media platforms.
The SECP has advised general public to remain cautious, verify the authenticity of any financial offer or lending platform, and refrain from sharing personal or financial information with unverified sources. List of SECP licensed companies and approved personal loan apps is available on SECP website for convenience of the general public.
