The Securities and Exchange Commission of Pakistan (SECP) issued a public alert warning about illegal and exploitative personal loan schemes being promoted via social media, including sponsored advertisements falsely offering quick, interest-free loans with minimal requirements. After a coordinated crackdown on 141 unauthorised digital lending apps, the SECP reports that operators have shifted to social media, using the names of reputable organisations to appear legitimate. The scams typically seek upfront “processing” or “registration” type fees or request sensitive personal information, after which no loan is disbursed. The SECP is reporting such activity to the Federal Investigation Agency and the Pakistan Telecommunication Authority for enforcement action and removal of fraudulent advertisements, and advised the public to verify offers and consult the list of SECP-licensed companies and approved personal loan apps on the SECP website.
Securites & Exchange Commission of Pakistan 2025-05-22
Securities and Exchange Commission of Pakistan warns the public about fraudulent social media loan schemes after crackdown on 141 unauthorised digital lending apps
The Securities and Exchange Commission of Pakistan (SECP) alerted the public about illegal personal loan schemes on social media, falsely offering quick, interest-free loans. After a crackdown on 141 unauthorized digital lending apps, operators moved to social media, using reputable names to appear legitimate and seeking upfront fees or personal information without disbursing loans. The SECP is working with the Federal Investigation Agency and the Pakistan Telecommunication Authority for enforcement and advised the public to verify offers against SECP-licensed companies.