The Securities and Exchange Commission of Pakistan (SECP) has issued a public warning concerning fraudulent activities linked to the now-defunct Barwaqt App, formerly operated by Seedcred Financial Services Limited (SFSL). The commission has also raised alarms over misleading claims circulating on social media, where individuals are falsely offering to alter or erase loan default records for a fee.
According to an official press release, SFSL is no longer operational and the Barwaqt App was formally delisted by the SECP in August 2024. Despite this, the app and its associated services are being misused by scammers who are attempting to exploit unaware consumers.
The SECP revealed that it has received multiple complaints indicating that certain individuals are falsely claiming they can remove or modify negative credit information — particularly loan defaults — from credit bureaus. These individuals are leveraging social media platforms to promote their services, luring borrowers by promising to “fix” their credit histories in exchange for payments.
“These practices are fraudulent and are being carried out without any legal authority,” the SECP emphasized in its statement. It categorically advised the public not to engage with or pay any money to such unauthorized individuals or entities claiming to offer credit repair services.
Under the Credit Bureau Act, 2015, only registered and authorized members of licensed credit bureaus are allowed to report, manage, or amend loan status and credit-related data. Any attempt by a third party to alter credit information without legal backing constitutes a serious violation of the law and can lead to criminal charges.
The SECP urged individuals to remain cautious and report any suspicious activity involving unauthorized financial services or fraudulent claims. It further encouraged consumers to verify the credibility of any financial service provider through official channels before engaging in any monetary transactions.
This latest warning forms part of the SECP’s broader effort to protect consumers from rising digital financial fraud. With the proliferation of fintech apps and online financial services in Pakistan, scammers are increasingly turning to social media to target vulnerable users, especially those who may be in financial distress or seeking quick fixes for poor credit histories.
The Barwaqt App, which once operated as a digital lending platform under SFSL, came under scrutiny for its operational practices and was subsequently delisted. Since then, the app’s name has been used in fraudulent schemes, with impersonators attempting to exploit its previous presence in the digital lending market.
As the digital finance ecosystem in Pakistan evolves, regulators like SECP are stepping up to ensure consumer safety and compliance with financial laws. This includes not only regulating active financial services but also monitoring the misuse of previously licensed entities and apps.
Consumers are advised to report fraudulent schemes directly to SECP and avoid engaging with unofficial actors promising to resolve financial issues outside the boundaries of legal frameworks. Vigilance remains the key to navigating an increasingly digital, yet occasionally deceptive, financial landscape.