PSX alerts investors about online trading frauds

KARACHI: The Pakistan Stock Exchange (PSX) has alerted investors about a surge in fraudulent activities through different social media platforms.

In a statement on Wednesday, the PSX said that some illegal social media groups and forums are using AI technology and conventional methods to entice the investing public to join in or fill in forms through WhatsApp groups, Facebook/Meta and other social media channels.

The scammers misuse the name of the registered professionals or claim to be affiliated with a legitimate company to lure the investing public to participate in unauthorized investment schemes. Scammers’ correspondence might often look authentic as such scammers use the regulator name, logo and images, as well as impersonate as part of top management and proprietary material which looks official.

The fraudulent groups and forums promise guaranteed fixed returns with minimal or no risk and provide exclusive access to insider tips and training on investment. They also ask to either share personal or financial information or send money directly to an individual or a third party.

To avoid becoming a victim of such types of scams, the PSX asks investors to be wary of unsolicited investment advice from illegal social media groups and forums.Trading in shares of listed companies should only be conducted through SECP-licensed securities brokers. A list of licenced securities brokers is available at the PSX’s official website.