Fraudsters using Barwaqt app name to extort money, warns SECP

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has warned the public about ongoing scams linked to the Barwaqt loan app, previously operated by Seedcred Financial Services Limited (SFSL).

In a statement issued on Friday, the SECP said SFSL is no longer operational and the Barwaqt app was officially delisted in August 2024. Despite this, the commission noted that some individuals are exploiting social media to falsely claim they can erase or modify loan default records previously reported by SFSL to credit bureaus.

These individuals are allegedly demanding money in exchange for such services, which the SECP confirmed are illegal and unauthorised.

The commission clarified that under the Credit Bureau Act, 2015, only registered members of licensed credit bureaus are allowed to report or make changes to loan-related data. It cautioned the public not to pay anyone offering to manipulate credit records, stressing that such claims are fraudulent.

Loan app scams have become increasingly common in Pakistan, with many users reporting excessive interest rates and coercive recovery practices. The SECP urged citizens to remain alert and avoid falling prey to deceptive lending platforms or individuals making false promises.

Any suspicious activity can be reported to the SECP through its official channels.

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