The app, which has now been removed from Google Play, was being used by thousands of people from all across Pakistan. Each customer invested a minimum amount of Rs. 15,000, which was dubbed the sign-up fee.
However, the app was primarily operating through a website and not through the Google Play version. The Google Play presence was likely just to build more trust of customers in the app.
One look at the cached Google Play page of the app shows that the app had a dodgy description which reads “used in 106 countries and regions around the world, supports multi-language subtitle service, global long and short film series, is currently the most user-friendly and popular film and television platform on the market, and the film industry is fully invested.”
A simple search on Youtube reveals that there are hundreds of videos with millions of aggregate views that are promoting the app as a legitimate earning opportunity. Similarly, there are dozens of groups on Facebook through which people were lured to sign up.
The app worked like a typical Ponzi scheme where users had to spend $50 (approximately Rs. 14,000 at the current exchange rate) to sign up, once signed up customers started earning from the app. Like all Ponzi schemes, the earnings were so low that it took people months before they could break even, and during that time they were provided a higher ‘profit’ to lure other people to sign up.
One video, uploaded in April on Youtube, explains that the app offers excellent returns after an investment of just $50. The Youtuber plays a voicenote in the video which claims that people have earned thousands of dollars through the app. Apparently, a Binance account was needed to deposit money into the app and for withdrawals
Recently the app communicated that is undertaking several policy changes and profit will be on hold for some time. This development alerted customers but it was too late by that time. After announcing a revision in policies, the app became less responsive as panicked customers looked for answers.
Recent Google reviews on the app also tell how customers slowly realized that they were being scammed in recent days with most customers warnings others against investing in the app.
A notice, available on the app’s login portal, claims that Jawa Eye has reached an agreement with the New York Stock Exchange on a ‘listing plan’, an obviously fake claim.
Recently FIA Faisalabad has also registered an FIR against some individuals in District Sahiwal who are involved in this business. According to the FIR, criminal groups are engaging in illegal foreign currency trading in the Sahiwal. They have installed various investment-related apps on their phones and also transferred remittances through Hawala or Hundi using unauthorized local agents in different cities.
It is important to note that an unlicensed app cannot provide financial services unless it is registered with the relevant departments.
The Securities and Exchange Commission of Pakistan (SECP) had also taken up this matter with Google and requested that only registered apps with relevant regulators such as the State Bank of Pakistan (SBP) or SECP be placed on the Play Store.
However, the fact that the app in question was operating in Pakistan for months without any action against it raises serious questions about the performance of relevant departments.
