PSX alerts public to AI-driven online trading scams via social media
The Pakistan Stock Exchange warned investors on 2 October 2024 about fraudulent groups using AI and social media to conduct unauthorized investment schemes. The scammers impersonate licensed professionals, misuse regulators' names and logos, and promise guaranteed returns to lure victims into sharing financial information or sending money.
What happened
Some illegal social media groups and forums are using AI technology and conventional methods to entice the investing public through WhatsApp groups, Facebook/Meta and other social media channels.
The scammers misuse the name of registered professionals or claim affiliation with legitimate companies, impersonate top management, and use regulator names, logos and images to lure people into unauthorized investment schemes.
Reported impact
The fraudulent groups and forums promise guaranteed fixed returns with minimal or no risk and provide exclusive access to insider tips and training on investment. They ask participants to share personal or financial information or send money directly to individuals or third parties.
Governance controls
The Pakistan Stock Exchange advised investors to conduct trading in shares of listed companies only through SECP-licensed securities brokers and to be wary of unsolicited investment advice from illegal social media groups and forums.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.