When Shazia Nazir, a housewife from Gilgit, invested half a million rupees in an online investment platform she saw on Facebook, she thought she had finally found the 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 his savings.
“I thought it was authentic,” she said softly. “The app looked professional and even showed live profit updates. Now I can’t open it. My money is gone.”
Shazia’s story is becoming all too common in Gilgit-Baltistan, the mountainous region of northern Pakistan that borders China, Afghanistan and India. Once known for its serene beauty and isolated valleys, the region, with a population of two million, is now grappling 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 even greater misery. Previously, the infamous Mudaraba scam targeted religiously inclined individuals by promising “interest-free” profits and “clean money”, leaving thousands of trusting investors penniless once it collapsed.
The ideal setting for scammers
Gilgit-Baltistan (GB) is one of the most geographically isolated regions in South Asia. Its rugged terrain, snow-capped peaks and scattered villages make it both breathtaking and challenging. With limited industrial or private development, most people rely on government jobs, petty trading, or remittances from relatives working elsewhere in Pakistan or abroad.
Educational standards have improved in recent years, but digital literacy remains low, particularly among older citizens and housewives. While young people are increasingly active online, many do not have sufficient awareness of online safety and financial fraud.
As internet access has rapidly expanded during the COVID-19 pandemic, mobile phones and social media have become lifelines for communication and commerce. But this digital expansion has also opened the door to cybercriminals.
The Whale International scam: a costly illusion
Thousands of people across Gilgit-Baltistan – especially in Hunza and Skardu – have recently fallen victim to an online gaming and investment app called Whale International Binance.
At its peak, locals say the app processed transactions worth millions of rupees daily. “People were told they could get high returns just by ‘investing’ and inviting others to join,” says Afaq Ahmed, a resident of Gilgit.
It was presented as a simple, modern way to increase income – particularly attractive in a region where employment opportunities are limited.
Then, as confidence peaked, the app suddenly disappeared. Accounts were frozen, withdrawals blocked and all communication interrupted. The total estimated loss is around Rs3.90 crore.
“I invested first, then I told my friends and cousins,” said a young man from Hunza who requested anonymity. “Now everyone is mad at 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 apps follow a familiar pattern:
Launch and publicity (0-3 months): Fraudsters develop a professional-looking platform and heavily promote it on Facebook, Instagram and YouTube using fake success stories.
Gain trust (3-6 months): They allow small withdrawals, so users feel secure.
Bulk Withdrawals (6-9 months): Once large amounts are invested, they create “technical errors” or “policy changes.”
Disappear (9-12 months): The app disappears, along with all user funds, only to reappear later under a new name.
To deceive users, these scams use several psychological and digital tricks:
Fake celebrity endorsements to boost credibility.
Referral programs offering bonuses for inviting others.
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 unreal gains.
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 full of stories of loss and regret. Many victims had invested the money they saved for their children’s education, dowry or starting a small business.
A teacher from Skardu said he lost Rs 200,000, believing it was “a chance to earn passive income”.
“Everyone was doing it,” he said. “They showed us screenshots of the profits. I thought this was the future.”
For families in a region where monthly incomes often range between Rs20,000 and Rs40,000, these losses are devastating. Some victims even borrowed money to invest, hoping for quick returns that never arrived.
Weak surveillance, growing threat
Pakistan’s digital financial ecosystem has grown 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 schemes that bypass Pakistan’s traditional banking framework. This makes investigations and recovery of funds almost impossible.
“The lack of coordination between regulators, telecom authorities and digital platforms allows fraudsters to exploit users,” says a financial analyst in Islamabad. “Without digital literacy and stricter enforcement from the State Bank of Pakistan, SECP and the FIA Cyber Crime Wing, people will continue to fall into these traps.”
Building digital resilience
Experts suggest that Pakistan’s regulators, industry players and digital service providers need to work together to create a safer online environment.
Stricter regulations:
All investment apps must be registered with recognized authorities such as the SECP or international regulators like the FCA (UK), SEBI (India) or ASIC (Australia).
Public awareness:
Regular awareness campaigns – in Urdu and regional languages – should educate citizens about digital scams, secure payment methods and safe online practices.
Verification tools:
Telecommunications companies and banks should provide users with simple tools to check whether an investment platform is licensed.
Industry Responsibility:
Social media platforms must act more quickly to block fraudulent ads and pages once reported.
Community education:
Local schools, colleges and NGOs in Gilgit-Baltistan can play a role in integrating digital literacy into their community programs.
What you can do
If you think an application or investment opportunity is fake:
Check its 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 large deposits.
Report the fraud to the FIA Cyber Crime Wing and your bank.
Warn others on social media to avoid further victims.
A cautionary tale 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 type 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 provide for my family,” she says. “Instead, I learned the hardest lesson: never trust easy money.”
The rise of digital scams like Whale International Binance highlights 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 seems too good to be true, it probably is.
Stay vigilant, stay informed, and protect your digital wallet before it’s too late.
