Pakistan’s financial markets regulator has banned 141 fraudulent digital loan applications as part of an intensified crackdown on online financial scams, according to 24NewsHD.
The Securities and Exchange Commission of Pakistan (SECP) said the platforms were offering interest-free loans via Facebook and other social media platforms, only to vanish after collecting advance fees from unsuspecting users.
The apps reportedly impersonated legitimate financial institutions and claimed to provide easy installment-based loans with no interest, targeting financially vulnerable users.
Once they gained access to personal information and collected initial payments under the guise of processing or approval fees, the operators would disappear, failing to deliver the promised funds.
In a statement, the SECP said many of the apps exploited the names of well-known organizations to build public trust.
The commission is preparing to file formal complaints against the individuals behind these platforms with the Federal Investigation Agency (FIA) and the Pakistan Telecommunication Authority (PTA), aiming to block future access and pursue legal accountability.
The SECP also issued a public advisory warning citizens against sharing sensitive personal information or transferring money without verifying the authenticity of loan providers.
It urged users to confirm the legitimacy of any digital platform offering monetary assistance, particularly those not listed or registered with the commission.
The move comes amid rising concerns over predatory practices in Pakistan’s digital lending space, where unregulated apps have been linked to data misuse, harassment, and financial exploitation.
The crackdown is expected to reinforce consumer protection and promote more secure and transparent fintech operations in the country.
As digital financial services grow in popularity, the SECP has signaled that closer monitoring, better regulation, and public awareness will be central to curbing fraud and maintaining confidence in Pakistan’s evolving digital economy.
