PSX Warns Investors Against Online Trading Frauds

Pakistan Stock Exchange Limited (PSX) has alerted the public regarding the surge in fraudulent activities through different social media platforms.   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, it said in a press release on Wednesday.  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 that looks official, it said.  PSX said fraudulent groups and forums promise guaranteed fixed returns with minimal or no risk and provide exclusive access to insider tips and training on investments. They also ask to share personal or financial information or to send money directly to the individual or a third party.  To avoid becoming a victim of such types of scams, PSX has warned to be wary and alert 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, PSX added. A list of licensed securities brokers is available here.  It also advised investors to visit the official websites/ social media pages of SECP, PSX, CDC and NCCPL to keep themselves updated and make well-informed and prudent investment decisions.  PSX also warned the public not to deposit, invest, or deal with illegal and unauthorized groups and forums on social media.   PSX said it will not be held responsible for any loss or damage incurred by any person due to unauthorized use of its intellectual property or misrepresentation of any person which may include viewing, subscribing, or signing up for any unauthorized social media pages, posts, web-groups or WhatsApp groups.