The Securities and Exchange Commission of Pakistan (SECP) has issued a warning to the general public, cautioning them against falling victim to fraudulent financial schemes. The SECP aims to raise awareness about different types of potentially fraudulent activities through these warnings.
According to the SECP, fraudulent activities are being carried out by companies, entities, or individuals posing as legitimate incorporated persons. Based on information gathered from social media, complaints, and recent queries, the SECP has observed certain business models used to lure the public into these schemes. Mobile and web-based apps that promise lucrative profits and bonuses on deposits and investments are commonly used.
Fraudulent promoters convince individuals to deposit money for investments in various products, such as Surface Mount LED (SMD) screens, trading of different products, forex, and cryptocurrencies, with the promise of high returns. Additionally, the public is enticed to provide advances or down payments for loans or assets on lease at easy installments and low markup rates.
The SECP emphasizes that the Certificate of Incorporation is the only evidence of a company’s registration as a legitimate corporate entity. The general public is advised to exercise caution and be aware of the risks associated with such fraudulent financial schemes.
These warnings from the SECP serve as a reminder for individuals to remain vigilant and exercise due diligence before engaging in any financial transactions or investments. Increased awareness and caution can help protect the public from falling prey to scams and fraudulent activities.
