SECP has issued an urgent alert to the public regarding fraudulent activities linked to the Barwaqt App, previously operated by Seedcred Financial Services Limited (SFSL). The SECP’s warning comes in response to reports of scams circulating on social media, where certain individuals are misleading people with promises to alter or remove loan default records associated with SFSL’s Barwaqt App, which was officially delisted by the SECP in August 2024.
In a statement issued by the SECP, it was emphasized that SFSL is no longer operational, and any claims made by unauthorized individuals that they can amend loan default records reported to credit bureaus are fraudulent. These perpetrators are leveraging social media platforms to target unsuspecting consumers, falsely asserting that they possess the means to influence credit records for a fee. In many cases, these individuals demand money upfront, offering services that they have no legal authority to provide.
The SECP made it clear that these actions are in direct violation of the law, particularly the Credit Bureau Act of 2015, which stipulates that only authorized members of credit bureaus have the legal right to report loan statuses or alter any related data. The commission stressed that no one other than these licensed entities can make changes to credit records, reinforcing that any claims to the contrary are part of a scam. In light of this, SECP has advised the public to remain vigilant and refrain from engaging with any individuals or organizations that claim to provide such unauthorized services. The commission further urged people not to make any payments or share personal information with anyone promising to rectify their credit records for a fee.
This alert highlights the growing issue of financial frauds and scams, particularly those exploiting the trust of individuals seeking to improve their financial standings. The SECP’s reminder underscores the importance of engaging only with legally recognized financial entities and credit bureaus, and avoiding interactions with unofficial, unauthorized parties claiming to offer services outside the scope of the law. In its ongoing efforts to safeguard the public and promote financial transparency, the SECP continues to monitor and respond to emerging threats in the financial sector, advising consumers to exercise caution and report any suspicious activity to the relevant authorities.
