Daily Times

The Securities and Exchange Commission of Pakistan (SECP), from time to time, issues public warnings to raise awareness among the general public regarding typologies of potentially fraudulent activities perpetrated by companies or entities/individuals posing as legitimate incorporated persons that come to its attention.

The objective is to educate the public, enabling them to recognize and avoid falling prey to deceptive practices, said a press release issued here. On the basis of information available on social media and complaints/queries received recently, it is observed that the following typical business models are being used to lure the public. Mobile/web-based apps promising lucrative profits/referral bonuses on deposits/investments.

Seeking deposits in the name of making investments on your behalf in different products and promising lucrative returns like investments in Surface Mount LED (SMD) screens, trading of different products/forex/cryptos. Taking advances in the name of fees/down payment for the provision of loans or assets on lease/easy instalments at low markup.

Receiving funds for online jobs packages, the general public is, once again, cautioned that the Certificate of Incorporation of a company is only evidence of its registration as a corporate entity. Deposit-taking/leasing/financing is only permissible to companies which have obtained a license (different from an incorporation certificate) to that effect. Any person dealing with a company is recommended to self-check the status of that company on SECP’s website or by raising a query with SECP at https://sdms.secp.gov.pk/. A list of companies suspected to be involved in unauthorized businesses is placed on the SECP website and is updated from time to time. It is noticed that ill-willed actors devise new models to interact with and deceive the public. The public is therefore advised to remain vigilant and report any suspected activity by a registered company at scams@secp.gov.pk.