SECP warns public against illegal online investment platforms

The Securities and Exchange Commission of Pakistan (SECP) has issued a strong warning to the public to stay away from illegal online investment platforms that are operating without approval, ARY News reported.

In a statement, SECP declared Hill House Capital, Hill House Investment, and S169 Wharton as unauthorized and illegal investment platforms. The regulator said these entities are misleading people by offering false promises of high profits.

SECP explained that such platforms often use attractive claims and fake marketing to trap investors and then disappear with their money. The commission has already reported these illegal platforms to the relevant authorities for further action.

The regulator advised the public to invest only through brokers and companies licensed by SECP. People were also warned not to deposit money on websites, apps, or platforms that are not officially approved.

SECP urged investors to verify the status of any investment company before sending money, saying that taking a few minutes to check can help avoid major financial losses.

The warning comes as online investment scams are increasing in Pakistan, putting many people at risk of losing their savings.

A similar warning was issued on December 10, 2025, by the Securities and Exchange Commission of Pakistan (SECP), alerting the public to the growing threat posed by unlicensed online trading platforms, websites, and mobile applications targeting investors.

The commission highlighted that these platforms, which often promise high, risk-free returns on investments in stocks and other financial products, in local and international markets, are operating illegally and misleading users.

These fraudulent platforms are aggressively promoted on social media, offering attractive incentives with guaranteed profits and making false claims of risk-free investments.

The platforms frequently rely on unverified apps and websites that closely resemble legitimate trading portals, in an effort to deceive users.

According to the SECP, in a disturbing trend, scammers behind these platforms often impersonate licensed securities and commodities brokers, reputable institutions, professionals, finfluencers, senior government officials, and even regulatory bodies.

Disguised as free investment tips, advisory, or investment-guidance providers, they claim to offer expert recommendations to earn guaranteed profits.

The SECP warns that these platforms frequently display fabricated dashboards showing fake balances and profit figures to build trust among users.

These platforms may even allow small withdrawals early on to create a sense of security, only to later encourage victims to invest more funds before blocking their access to the platform when refund requests are made.