Regulator Issues Public Alert on Illegal Investment Scheme
The Securities and Exchange Commission of Pakistan (SECP) has issued a stern warning to the public about fraudulent activities associated with the mobile app Barwaqt. The regulatory body has clarified that the app is not authorized to offer financial services or investment opportunities in Pakistan.
What is Barwaqt App?
Barwaqt is a mobile application claiming to provide high-return investment opportunities, particularly in the buy-now-pay-later (BNPL) and digital lending space. However, the SECP has confirmed that:
- The app is not registered with the commission.
- It is illegally collecting funds from the public.
- Its operations violate Pakistan’s financial regulations.
SECP’s Key Warnings for Investors
The SECP has advised citizens to exercise extreme caution and highlighted the following risks:
- No Regulatory Approval: Barwaqt is not licensed by SECP or any other financial authority in Pakistan.
- Potential Scam: The app may be running a Ponzi scheme, promising unrealistic returns to lure investors.
- Risk of Financial Loss: Users who invest may lose their money with no legal recourse.
How to Identify and Avoid Fraudulent Schemes?
To protect themselves from scams, investors should:
✔ Check SECP’s Registered Entities List – Only invest with SECP-approved companies.
✔ Avoid Unrealistic Returns – If an offer sounds too good to be true, it probably is.
✔ Verify Company Credentials – Look for proper licensing before investing.
Legal Actions Against Unauthorized Platforms
The SECP has stated that it will take strict legal action against:
- Illegal investment schemes.
- Unregistered financial service providers.
- Apps misleading the public with fake promises.
What Should Affected Users Do?
If anyone has already invested in Barwaqt or similar apps, the SECP recommends:
- Immediately ceasing further transactions.
- Reporting the activity to SECP’s complaint portal.
- Seeking legal advice if funds are stuck.
Final Advice: Stay Vigilant Against Financial Scams
The SECP’s warning underscores the growing threat of digital financial fraud in Pakistan. Citizens must remain cautious and only engage with regulated financial platforms to safeguard their money.
Conclusion
With the rise of online investment scams, regulatory bodies like the SECP are stepping up efforts to protect consumers. The public is urged to verify before investing and report suspicious apps to prevent financial losses.
This version improves readability with clear headings, bullet points, and a structured flow while keeping the original article’s key details. Let me know if you’d like any refinements!
