When Shazia Nazir, a housewife from Gilgit, invested half a million Rs 500,000 in an online investment platform she saw on Facebook, she believed she had finally found a path to financial independence. The app promised daily profits, risk-free investments, and even displayed graphs showing its increasing returns. Then one morning, the app disappeared, and with it, all their savings.
“I thought it was genuine,” he says quietly. “The app looked professional and even showed live earnings updates. Now I can’t open it. I’m out of money.”
Shazia’s story is becoming very common in Gilgit-Baltistan, the mountainous region of northern Pakistan that borders China, Afghanistan and India. The region, once known for its serene beauty and remote valleys, with a population of two million people, is now dealing with a different kind of storm: digital financial scams that prey on the hopes and savings of ordinary people.
Last year, a similar online scam defrauded hundreds of people in the same way, plunging the already cash-strapped population into deeper misery. Previously, the infamous Mudaraba scam had targeted the religiously inclined by promising “interest-free” profits and “clean money”, leaving thousands of unsuspecting investors penniless once it collapsed.
The perfect scenario for scammers
Gilgit-Baltistan (GB) is one of the most geographically isolated regions in South Asia. Its rugged terrain, snow-capped peaks and scattered settlements make it both impressive and challenging. With limited industrial or private sector development, most people depend on government jobs, small-scale trading, or remittances from relatives working elsewhere in Pakistan or abroad.
Educational standards have improved in recent years, but digital literacy remains low, especially among senior citizens and housewives. While young people are increasingly active online, many lack awareness about online safety and financial fraud.
As Internet access expanded rapidly during the COVID-19 pandemic, mobile phones and social media became lifelines for communication and commerce. However, this digital expansion also opened the door to cybercriminals.
The Whale International scam: an expensive illusion
Thousands of people in Gilgit-Baltistan, particularly in Hunza and Skardu, recently fell victim to an online gambling and investment app called Whale International Binance.
At its peak, locals say the app handled transactions worth millions of rupees daily. “People were told they could earn high returns by simply ‘investing’ and inviting others to join,” says Gilgit resident Afaq Ahmed.
It was marketed as an easy, modern way to increase income, especially attractive in a region with limited employment opportunities.
Then, just as trust peaked, the app suddenly disappeared. Accounts were frozen, withdrawals were blocked, and all communication was interrupted. The total estimated loss is around Rs 3.90 crore.
“I first invested and then told my friends and cousins,” said a young man from Hunza who requested anonymity. “Now everyone blames me because they lost money too. The app’s support number no longer works and their Facebook page is gone.”
How scams work
These fraudulent applications follow a familiar manual:
Launch and advertising (0-3 months): Scammers develop a professional-looking platform and promote it heavily on Facebook, Instagram, and YouTube using fake success stories.
Gain Trust (3 to 6 months): They allow small withdrawals, so that users feel safe.
Block Withdrawals (6-9 months): Once large sums are invested, “technical errors” or “policy changes” are created.
Disappear (9 to 12 months): The app disappears, along with all the user’s funds, only to reappear with a new name later.
To trick users, these scams use various psychological and digital tricks:
Fake celebrity endorsements to build credibility.
Referral programs that offer bonuses for referring other people.
High-pressure tactics urging users to “invest now before it’s too late.”
Fake customer support that delays or denies withdrawal requests.
Fabricated charts and profit dashboards showing unrealistic profits.
The result: a false sense of security that eventually collapses, leaving entire communities in financial ruin.
The human cost
In Gilgit and Skardu, local WhatsApp groups and Facebook pages are filled with stories of loss and regret. Many victims had invested the money saved for their children’s education, dowries or small businesses.
A school teacher from Skardu shared that he lost Rs 200,000, believing it was “an opportunity to earn passive income”.
“Everyone was doing it,” he said. “They showed us screenshots of the earnings. I thought it was the future.”
For families in a region where monthly income typically ranges between Rs 20,000 and Rs 40,000, these losses are devastating. Some victims even borrowed money to invest, expecting quick returns that never came.
Weak supervision, growing threat
Pakistan’s digital financial ecosystem has expanded rapidly in recent years, from mobile wallets to online investment platforms. However, regulatory oversight and public awareness have not kept pace.
In many cases, fraudsters operate from abroad or use cryptocurrency-based systems that bypass Pakistan’s traditional banking framework. This makes investigation and recovery of funds almost impossible.
“Lack of coordination between regulators, telecom authorities and digital platforms allows fraudsters to exploit users,” says an Islamabad-based financial analyst. “Without digital literacy and stricter enforcement by the State Bank of Pakistan, SECP and FIA Cyber Crime Wing, people will continue to fall into these traps.”
Building digital resilience
Experts suggest that regulatory bodies, industry players and digital service providers in Pakistan need to work together to create a safer online environment.
Stricter regulation:
All investment applications must be registered with recognized authorities such as SECP or international regulators such as FCA (UK), SEBI (India) or ASIC (Australia).
Public awareness:
Regular awareness campaigns (in Urdu and regional languages) should educate citizens about digital scams, safe payment methods and safe online practices.
Verification tools:
Telcos and banks should provide users with simple tools to check whether an investment platform is licensed.
Industry Responsibility:
Social media platforms must act faster to block fraudulent ads and pages once they are reported.
Community Education:
Schools, universities and local NGOs in Gilgit-Baltistan can play a role by integrating digital literacy into their community programs.
what can you do
If you suspect that an application or investment opportunity is fake:
Check your license with the SECP or other regulators.
Avoid unrealistic promises of “guaranteed” profits.
Find company details and contact numbers.
Read reviews from genuine users, not just sponsored ones.
Test withdrawals before making large deposits.
Report the fraud to the FIA Cyber Crime Department and your bank.
Warn others on social media to help prevent more victims.
A warning for the digital age
The people of Gilgit-Baltistan are resilient: they have survived harsh winters, natural disasters and isolation for decades. But now they face a new kind of challenge: digital deception.
For victims like Shazia Nazir, the experience is a painful reminder that financial dreams can disappear as quickly as a downloaded app.
“I wanted to support my family,” he says. “Instead, I learned the hardest lesson: never trust easy money.”
The rise of digital scams like Whale International Binance underscores a national problem: as Pakistan moves toward a cashless future, the need for digital security, literacy and trust has never been greater.
If something online sounds too good to be true, it probably is.
Stay alert, informed and protect your digital wallet before it’s too late.
