Scam Alert: SECP warns of fradulent investment scheme on social media

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a scam notice regarding an illegal investment and deposit-taking scheme being aggressively marketed on social media. 4D Group of Companies and its proprietor Muhammad Asif offer monthly returns of 8% to 12%.

The SECP notified the general public that the 4D Group of Companies is not incorporated and not registered with the SECP under the Companies Act, 2017.

In addition, it is not licensed to collect deposits from the public or provide any investment schemes.

The investment and deposit-taking operations of the 4D Group of Companies are illegal and carry a high risk of financial loss to the public.

The SECP warns the public against investing or depositing money with the 4D Group of Companies or any other similar unregistered platform, in whatever form or arrangement.

The case has been referred to the concerned investigative authorities for further action against the persons involved in these illegal schemes.

The public is also reminded that a company’s “Certificate of Incorporation” only verifies its registration with the SECP; it does not entitle the company to collect deposits or introduce investment schemes.

The SECP requests the public to be cautious and to check the authenticity of any investment opportunity through the SECP’s official channels.

Protecting the public and preventing unauthorised investment schemes are top priorities for the SECP, which continues to monitor such activities and takes necessary action when such activities are identified.

The public can report suspected fraudulent investment schemes through the SECP’s Complaint Management System, by email, or through the SECP Toll-Free Helpline at 0800-88008.