Fraudulent Activities in Online Banking in Pakistan Remain Unaddressed Despite FIA Claims of Timely Case Resolution
Despite claims by the Federal Investigation Agency (FIA) that they are handling cases of online banking fraud in a timely manner, complaints of electronic scamming remain unaddressed, leaving thousands of citizens victimized and frustrated.
Cases of Online Banking Fraud Continue to Rise
Recent months have seen numerous cases of fraudulent activities reported, with many victims claiming that they were unable to get any relief from the FIA. One such case involves Shahid Ali Shah, who had Rs80,000 fraudulently withdrawn from his account through a mobile banking app during recent holidays. Despite contacting the bank and reporting the incident to the FIA, Shah has yet to see any action taken against the scammers.
- Another case involves Asif Chaudhry, who was targeted by scammers who applied for an online loan of Rs0.5 million using his bank account.
- Although the bank cancelled the loan payment, the FIA has still not been able to trace the fraudster.
Investigation Process Difficult Due to Complexity
According to FIA’s Additional Director Law, Masood Naseem, investigation of online fraud takes at least one to three months due to the difficulty in tracing the identity of the fraudsters and their accomplices.
- “In cases of hacking, scammers withdraw money from people’s bank accounts and before we can trace the fraudster’s identity, the money is transferred to multiple other accounts or is withdrawn through Jazz Cash, Raast account or other microfinance apps, making the process of investigation fairly difficult,” Naseem explained.
Experts Blame Carelessness for Online Banking Fraud
However, many experts believe that online banking fraud often occurs due to carelessness on the part of account holders.
- “Even educated people are becoming victims of cyber fraud. FIA officials are unable to take more complaints since the rate of online banking fraud has increased tremendously,” claimed Jahangir Khan, Operations Manager at a bank.
Statistics Reveal Alarming Increase in Online Banking Fraud
Statistics obtained by this newspaper reveal that cases of online banking fraud in Punjab have increased by almost 1,871 per cent over the past five years, with:
- 557 cases reported in 2019
- 10,980 cases identified in 2023
- A total of 29,000 incidents of cyber fraud reported during the same time frame
Lack of Awareness Contributes to Online Banking Fraud
IT expert Shahid Hussain believes that online banking fraud has topped the rate of cybercrime in Pakistan due to lack of awareness among people about digital finance.
- “The actual number of online fraud cases would be three times higher than those reported since many people are unaware of the procedure for its investigation,” he said.
FIA Officials Face Challenges in Handling Online Banking Fraud Cases
FIA officials, however, claim that they have to investigate several aspects of each incident, including details of mobile SIMs used by the accused. This lengthy process can take up to 90 to 180 days, making it difficult for them to handle a large number of cases.
- “If the accused are caught, they are punished with imprisonment for up to seven years,” said Naseem.
- Director Crime FIA Punjab, Jahanzaib Nazeer conceded that the rate of online banking fraud is increasing day by day and that the agency is facing challenges in handling these cases due to limited resources.
Citizens Feel Frustrated and Helpless
The lack of action taken by the FIA against online banking fraud has left many citizens feeling frustrated and helpless. As the number of fraudulent activities continues to rise, it remains to be seen whether the agency will be able to effectively address this issue or not.