Unregulated Trading Apps in Pakistan Fuel Cyber Scams and Dollar Flight

Experts raise alarm over the surge of unregulated trading apps, growing cyber scams, and their impact on the economy.

Date: October 19, 2025 | Author: Muzzammil (Rewritten)

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Pakistan’s financial ecosystem is facing a serious challenge as unregulated online trading apps and illegal investment platforms rapidly spread across the country. These platforms promise easy earnings and high returns but often lead to financial fraud, identity theft, and massive dollar flight from the economy.

Many of these apps operate beyond the supervision of the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP), raising red flags for investor security and the integrity of the financial system.

Rising Cyber Scams Linked to Trading Apps

According to financial expert Ibrahim Amin, the increasing use of broadband and smartphones has also opened the door to cybercrime. These scams not only drain people’s savings but also build mistrust in legitimate digital financial services.

A recent example involves a well-known influencer Ducky Bhai, who promoted several trading and investment apps that were later revealed to be illegal. Initially known for entertainment content, he shifted to promoting these platforms — unknowingly stepping into a legal minefield. When regulators discovered his involvement, action was taken against him. Authorities confirmed that many of these apps are nothing more than disguised betting or gambling services.

As per SECP laws, it is illegal to promote investment platforms that guarantee or imply fixed returns. However, influencers continue to push these apps, lured by affiliate commissions and undisclosed deals.

Crackdown on Illegal Investment Platforms

In a significant move, the National Cyber Crime Investigation Agency (NCCIA) recently listed 46 mobile applications and websites — including forex, betting, and trading platforms — as illegal in Pakistan. Major names such as 1xBet, Aviator, Dafabet, and Bet365 were on this list.

Following this, the Pakistan Telecommunication Authority (PTA) swiftly blocked these platforms to protect users from fraud, data theft, and identity misuse. But despite these efforts, unregulated investment apps continue to gain traction due to their user-friendly designs and false promises of fast profits.

Massive Download Numbers Raise Concerns

Fintech analyst Mutaher Khan explains, “These apps make investing look easy. People think they can make money instantly, but what they don’t realise is that there is no legal protection if they lose their funds.”

• Olymp Trade: Over 5.6 million downloads in Pakistan.
• IQ Option: 3.9 million downloads, ranking Pakistan sixth worldwide.
• Binance: 14.2 million downloads since 2017, making Pakistan its second-largest market after India.
• EasyPaisa and JazzCash remain the most downloaded regulated finance apps, with 12.1M and 10.4M downloads respectively.

On the e-commerce side, Temu topped the charts with 8 million downloads, followed by Daraz with 7.7 million. Ironically, Temu is not regulated in Pakistan, while Daraz is. This contrast highlights the regulatory gap that scammers are exploiting.

The Real Threat: Dollar Flight and Economic Pressure

Experts emphasize that unregulated trading platforms are not just a personal risk; they pose a macroeconomic threat. Since many of these apps involve forex trading or cryptocurrency investments, they enable uncontrolled dollar outflows.

An economist from a Karachi-based think tank explained, “Every dollar invested in offshore assets through these illegal apps adds pressure on the country’s already low foreign reserves, which hover around $20 billion. Even small outflows can impact the rupee’s stability and worsen the balance of payments.”

Experts Call for Public Awareness and Regulation

Deputy Chief of the Citizens-Police Liaison Committee (CPLC) Sindh, Shabbar Malik, highlighted that these scams have grown into “organised criminal systems” operating nationwide. He stressed that both the government and citizens share responsibility in combating this wave of financial fraud.

“Half the responsibility lies with the authorities, and the other half with citizens. People need to be aware and cautious while using digital platforms,” he said.

Analysts suggest that a multi-layered strategy is essential: tighter regulations, digital literacy programs, real-time reporting channels for scams, and more legitimate investment opportunities to attract users away from illegal apps.

Conclusion: A Financial Wake-Up Call for Pakistan

The surge of unregulated trading apps in Pakistan is not just a cyber issue — it’s a national economic concern. With millions at risk of scams, and billions of rupees potentially leaving the country, this problem demands urgent attention.

Stronger regulations, enforcement, and public education can help curb this growing threat. As tempting as “easy money” may sound, financial security and trust should always come first.