SECP warns public about fake trading apps posing as licenced brokers

Regulator urges people not to make any investment through such illegal WhatsApp groups, apps

The Securities and Exchange Commission of Pakistan has issued a public warning after detecting unauthorised individuals and groups operating illegal investment and trading platforms on social media and WhatsApp channels. The SECP has urged citizens to steer clear of fraudulent applications that misuse the names of licenced brokerage houses, prominent personalities, and financial influencers to lure investors.

In a statement, the SECP said, various entities were deceitfully using the names and images of licenced securities brokers and well-known public figures to gain credibility. It identified a mobile and web application titled TSLWEA/TSL WEALTH, which is falsely impersonating the brokerage firm Topline Securities Limited.

The commission also found a WhatsApp group named A103-Topline Stock Strategies Hub promoting the TSLWEA/TSL WEALTH application and falsely linking its operations to Topline Securities Limited, misleading potential investors. The SECP clarified that TSLWEA/TSL WEALTH is neither licenced nor authorised to offer investment or trading services for the Pakistan Stock Exchange (PSX) or any other regulated market.

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The regulator further highlighted the growing circulation of AI-generated advertisements on social media featuring altered images of celebrities, fintech influencers, and executives of reputed brokerage houses. These deceptive ads encourage users to join WhatsApp groups under the pretext of investing in shares of listed companies, exposing the public to serious financial risks.

The SECP warned that all such platforms and groups are illegal and mentioned that individuals joining them may face significant monetary losses. For secure and legitimate trading, investors were advised to engage only with SECP-licenced securities and futures brokers. Official lists of licenced entities are available on the PSX and PMEX websites.

The commission urged investors to remain vigilant, verify the authenticity of any investment platform, and avoid sharing money or personal information without proper due diligence. It added that the illegal platforms have been reported to Google, the Pakistan Telecommunication Authority, and relevant law enforcement bodies for action.

Issuing a strict advisory, SECP cautioned the public not to deposit funds or invest through the TSLWEA/TSL WEALTH application or through any individual or group promoting unlicenced investment platforms in any form.