Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has issued a public warning about fraudulent loan schemes being promoted through social media. This comes after a concerted effort to dismantle unauthorized digital lending apps led to the discovery of new tactics by scammers using platforms like Facebook to deceive individuals seeking personal loans.

The SECP’s alert follows a successful crackdown on 141 unauthorized digital lending applications. Despite these efforts, operators have shifted their focus to social media, where they employ sponsored ads to promote quick, interest-free loans with minimal requirements. These ads misuse the names of credible organizations to falsely establish legitimacy and attract potential victims.

The fraudulent schemes often involve requesting upfront charges for processing or registration or soliciting sensitive personal data under false pretenses. After obtaining payments or information, the perpetrators vanish without providing the promised loans.

The SECP is actively collaborating with the Federal Investigation Agency and the Pakistan Telecommunication Authority to report these illicit activities and ensure the removal of misleading advertisements from social media platforms.

The public is urged to exercise caution, verify the legitimacy of financial offers, and avoid sharing personal or financial details with unverified sources. The SECP provides a list of licensed companies and approved loan applications on its website for public reference.