The Securities and Exchange Commission of Pakistan has revealed the cyber crime act and it acted against the financial crime. They arrested the self styled stock market guru, who gave the tips of the self serving investment to the public with the use of facebook.
He adopted the pump and dump strategy of defrauding of the small investors and he would buy the large quantity of shares of the company and till it to the facebook followers that the financial prospects of the company had been improved. His followers on the social media rush to buy the stocks and he would sell his own holdings. Then he replicated this procedure for many times. Through this criminal procedure, he earned the illegal profit of Rs.58 million within six months.
The SECP combats the financial fraud like financial cybercrime and spearheading the initiative amid at formation of high level financial cybercrime prevention committee, which is added with heads of SECP, SBP, FIA and NAB to carry out the proactive and broad based enforcement action against the financial criminals. These collaborative efforts of the financial sector regulators and law enforcement agencies are widely prevalent in number of global jurisdiction and they have been successful in such fight.
Cyberspace presents the platform for the financial criminals and the scam operators to defraud the public and they adversely impact the regulated activities being undertaken by the legitimate and licensed operators. SECP is monitoring the emerging threat over previous 6 months and it is determined to fulfill the mandate of protecting the investors. SECP adopted the multi-pronged approach to tackle the illegal and unlicensed activities, which are being undertaken via cyber space.
SECP wrote two letters to FIA in September and April and they forwarded the list of the 32 and 42 illegal operators. The FIA carried out the investigation of these names and they take the requisite action. The SEWCP has reached to the largest bank in the country, National bank of Pakistan to use the branch network in order to identify the illegal operators all over the country. This request has been made to SBP to issue the circular to all branches to pay special attention to the incidence of unlicensed currency or commodity, financial trading activity in the geographical areas of responsibility.
SECP decided to form the team to carry out investigation of financial cyber crime. The team will carry out the work of surveillance, supervision and enforcement department for round the clock monitoring of websites, webpages, facebook etc for the possible abuses about online trading platforms, stock tipping, investment and income scheme, crowd funding and futures trading.