SECP Intensifies Monitoring of Social Media Loan Scams

The Securities and Exchange Commission of Pakistan (SECP) is maintaining strict surveillance over social media platforms to shield the public from deceptive and unlawful personal loan schemes.

Following the successful shutdown of 141 unauthorized digital lending applications through collaborative efforts, perpetrators of these scams have shifted to alternative routes, notably social media, to perpetuate their fraudulent activities.

The SECP has identified sponsored advertisements on platforms like Facebook, falsely promoting rapid, interest-free financing options with very few prerequisites.

Reputable organizations’ names are being fraudulently utilized in these promotions to feign legitimacy and build public confidence. These advertisements are designed to entice individuals into paying advance fees for purported processing, registration, insurance, or account verification purposes, or to extract sensitive personal details. After obtaining payment or information, the fraudsters vanish without providing any loan.

The SECP is proactively informing the Federal Investigation Agency (FIA) and the Pakistan Telecommunication Authority (PTA) about such platforms, urging them to take action against those involved and ensure the swift removal of these deceitful advertisements from social media.

The public is strongly urged to exercise caution, confirm the authenticity of any financial proposal or lending platform, and avoid sharing personal or financial data with unconfirmed sources. For the convenience of the public, a directory of SECP-licensed companies and sanctioned personal loan applications is available on the SECP website.