Rules & regulation
How can I avoid trading and investment scams in Pakistan?
Last reviewed:
Short answer
Deal only with platforms licensed by the SECP, PMEX or PVARA, and verify the licence on the regulator's own website — never through a link the seller sends. Walk away from anyone promising fixed or guaranteed returns, asking you to pay into a personal JazzCash, Easypaisa or bank account, or adding you to a WhatsApp group that tells you which shares to buy. The SECP has repeatedly warned about exactly these patterns.
The scams the SECP keeps warning about
- Fake broker apps: apps that copy the name and logo of a real licensed PSX broker. They show a convincing dashboard with fake profits, let you withdraw a small amount to build trust, push you to deposit more, then block your account.
- WhatsApp and Telegram "investment groups": a "professor" or "analyst" shares tips, members post screenshots of profits (often fake), then everyone is told to buy one obscure share — the organisers sell into the buying.
- Fixed-return schemes: "2% daily" or "15% monthly" profit plans, often labelled forex, crypto mining or AI trading. Real markets cannot pay fixed returns; early investors are paid with later investors' money.
- Account management: someone offers to trade your account for a profit share and asks for your login or remote access.
- Recovery scams: after you lose money, someone contacts you claiming they can recover it for an upfront fee.
Five-minute verification checklist
- Search the exact company name on the SECP website, the PSX broker list or the PMEX broker list. For crypto, check PVARA's announcements.
- Compare the app's developer name and website with the licensed firm's official site; impersonators use slightly different spellings.
- Confirm you will pay into an account in the company's name, never an individual's.
- For PSX shares, confirm every trade appears in your own CDC account statement, not only in the app.
- Search the name together with "SECP warning" — the regulator publishes press releases naming fraudulent platforms.
Red flags at a glance
| Red flag | Why it matters |
|---|---|
| Guaranteed or fixed profit | No legitimate market investment can promise it |
| Payment to a personal wallet or account | Licensed firms only accept money into company accounts |
| Pressure to deposit more to "unlock" withdrawals | Classic sign of a fake platform |
| Commission for bringing friends | Typical of Ponzi and pyramid schemes |
| Asks for your password, OTP or remote access | Gives them control of your accounts |
If you have been scammed
- Stop paying immediately — no further fee will release your money.
- Collect evidence: screenshots, chats, transaction IDs and account numbers.
- Inform your bank or wallet provider straight away and ask them to flag the receiving account.
- File complaints with the SECP's complaint portal and the FIA's cybercrime wing (now the National Cyber Crime Investigation Agency).
- Warn others in your community — scammers recycle the same groups and apps.
Roman Urdu mein jawab
Trading scam se kaise bachein?
Sirf SECP, PMEX ya PVARA licensed platform use karein aur license regulator ki apni website par check karein. Fixed ya guaranteed profit, kisi ke zaati JazzCash/Easypaisa account mein payment, ya WhatsApp group jo shares batata hai — yeh sab scam ki nishaniyan hain. Scam ho jaye to foran bank, SECP aur FIA/NCCIA ko report karein.
Frequently asked questions
How do I check if a broker is SECP registered?
Use the broker lists on the official SECP, PSX and PMEX websites. Do not rely on a certificate image or a registration number shown by the seller; check it yourself on the regulator's site.
Are all WhatsApp stock tip groups illegal?
The SECP has warned that groups offering share tips or managing investments without a licence are illegal and that members face a high risk of loss. Licensed research analysts publish under their firm's name.
Can scammers impersonate a real licensed broker?
Yes. In December 2025 the SECP warned specifically about fake trading apps impersonating licensed brokers, showing fake balances and blocking withdrawals.
Will I get my money back from a scam?
Recovery is difficult, especially when money went to personal accounts or abroad, but reporting quickly gives banks and investigators the best chance to freeze funds.
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