The Securities and Exchange Commission of Pakistan (SECP) has issued a clear warning to investors following the detection of illegal trading applications disguised as licensed brokerage firms defrauding citizens through social media and WhatsApp groups.
The regulator stated that many illegal individuals and online groups are spreading fraudulent investment schemes via WhatsApp groups and social media, in order to convince investors to invest in fraud-prone platforms.
The SECP discovered that a web and mobile application called “TSLWEA/TSL WEALTH” is falsely impersonating the well-known brokerage firm Topline Securities Limited to gain the trust of innocent users.
Visit Times of Karachi website for the latest news-related content daily
Officials also said that a WhatsApp group dubbed “A103-Topline Stock Strategies Hub” is also using Topline Securities’ identity while advertising an alleged trading system based on AI that is linked to the fake app.
The Commission clarified that “TSLWEA/TSL WEALTH” is not licensed, regulated, or licensed to provide trading or investment services for the Pakistan Stock Exchange or any other financial market.
The regulator has also noticed an increase in the use of AI-generated ads that feature edited photos of celebrities, FinFluencers, and executives from top brokerage firms to trick people into joining illegal trading organizations.
These false advertisements usually boast of ensuring high profits for shares of publicly traded companies and encourage individuals to join WhatsApp groups, which ultimately can lead to financial fraud.
READ: SBCA warns of action against ‘illegal portions’ sold in Karachi
The SECP warns that some of these social media companies are unlawful and unregulated, posing a financial risk since investors are not protected by law when dealing with non-legitimate platforms.
To ensure safe investment practices, the SECP recommends that investors invest only with brokerages that are licensed by the Commission. The official lists are posted through the PMEX and PSX websites. PSX as well as PMEX websites.
The Commission has disclosed the fraudulent application and related platforms to Google as well as the Pakistan Telecommunication Authority and law enforcement agencies, requesting immediate intervention, which includes the removal of the application and an investigation.
Follow the Times of Karachi channel on WhatsApp
Officials stressed that investors should verify the legitimacy of investment advertisements before releasing private information, putting money in, or joining online forums that claim to offer unattainable earnings.
The SECP further warned people not to transfer cash to “TSLWEA/TSL WEALTH” platform or to anyone who promotes illegal schemes using false names or fake digital identities.
