ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a warning about ongoing scams connected to the Barwaqt loan app, which was previously operated by Seedcred Financial Services Limited (SFSL).
In a statement on Friday, the SECP clarified that SFSL is no longer operational and the Barwaqt app was officially delisted in August 2024. However, scammers are now using social media to falsely claim they can erase or alter loan default records that were once reported by SFSL to credit bureaus.
These individuals are allegedly demanding money for such services, which the SECP has confirmed are both illegal and unauthorized.
The SECP emphasized that, under the Credit Bureau Act, 2015, only registered members of licensed credit bureaus can report or amend loan-related data. It strongly advised the public not to engage with or pay anyone making such fraudulent offers.
Loan app scams have become increasingly common in Pakistan, with users frequently reporting high interest rates and harsh recovery tactics. The SECP urged citizens to stay vigilant and avoid falling for deceptive lending schemes or individuals making false promises.
Suspicious activity can be reported to the SECP through its official channels.
