Online banking fraud

Recently, President Dr Arif Alvi asked Banking Mohtasib to take up the matter of banking fraud with the State Bank of Pakistan (SBP) to ensure the issuance of essential Standard Operating Procedures (SOPs), so that criminals could be blacklisted, and their access to the Banking industry could be blocked at earliest. The President also rejected two separate pleas filed by the United Bank Ltd (UBL) and Bank Alfalah Ltd (BAFL) directing the banks to pay Rs 1.9 million and Rs 0.744 million respectively to their customers who fell victim to online banking fraud at the hands of fraudsters.

Online banking scams, fraud and hacking are common in all parts of the world, while Pakistanis are not behind in this criminal activity. Online fraud often occurs after identity theft, clicking online phishing emails or messages, and unauthorized bank transactions. It’s crucial to regularly monitor our account transactions, use strong passwords, and be cautious of phishing attempts to protect ourselves from such threats. A sharp upsurge has been witnessed in online banking fraud, and criminal activities concerning the private banking sector particularly the HBL, Bank Alfalah, Allied Bank, Jazz Cash and Easy Paisa accounts, where criminals broke their security measures and made fake calls by using their official number, help lines and fake IDs similar to them for getting sensitive account information from the customers. Meanwhile, criminal gangs use easy paisa and Jazz cash accounts/ cell phone numbers for the transfer of illegal money, receiving ransom and other unlawful actions that jeopardize the writ of the law and hurt the public interest at large.

Concerns about lax regulations and corruption have been a long-held problem in the banking sector of the country throughout the past. Unfortunately, the banks have been found non-compliant with the SBP’s directives regarding the implementation of monitoring systems to detect fraudulent transactions. However, Pakistani Banks often blame individuals, and try to hide their monitoring, regulatory and security flaws making the matter worse for the individuals, the government and the Banking industry as well. The government and its relevant institutions including the State Bank of Pakistan (SBP), Finance Ministry and Financial Ombudsman must take proactive steps in enforcing and strengthening regulations in the banking sector to protect public interest and build confidence in the financial industry in the country. So, online banking fraud, money theft, and other serious crimes could be curbed permanently in the future.