Title: President Intervenes in Bank Fraud Cases: Orders Refunds Worth Rs 1.9 million to Two Victims

In a major development, President Dr. Arif Alvi has ordered Bank Alfalah Ltd (BAL) to refund a total of Rs 1.9 million to two Pakistani citizens who fell victim to unauthorized transactions. The President also emphasized the need for banking institutions to educate their customers about internet banking, digital financial services, and safety measures to prevent banking frauds.

Complaints Filed with the Banking Mohtasib of Pakistan (BMP)

Two account holders, Mr. Muhammad Shahzad from Lahore and Mrs. Asma Attiq from Gujranwala, had reported unauthorized transactions totaling Rs 1,479,255 and Rs 499,400, respectively, from their respective accounts. Both complainants approached the BMP for assistance.

Unwitting Activation of EFT Facility

In the case of Mr. Shahzad, BAL unwittingly activated the Electronic Funds Transfer (EFT) facility after receiving a phone call from a number registered to the account holder. The funds were then transferred to beneficiary accounts without his knowledge or consent.

Personal Data Shared with Bank Helpline

Mrs. Asma Attiq also encountered a similar situation when she received a call from the bank’s helpline and shared her personal data. Subsequently, an amount of Rs 499,400 was unauthorizedly withdrawn from her account.

Refunds Denied by the Bank

Both complainants approached the BMP to seek redressal, who ordered the bank to refund their stolen money. However, the bank, in its defense, contested the decisions by filing separate representations with the President.

Hearings and Ruling

During the hearings, the bank argued that the customers had shared their personal banking details with unknown persons, implying that it was not liable for the loss of money. However, the President rejected this plea, asserting that the bank had made the EFT facility operational without the consent or request of the account holders.

Accountability of Banks

The President emphasized that it was the banks’ responsibility to safeguard their customers’ interests. The security systems in place were inadequate, and the banks needed to revise and strengthen them. Additionally, the banks were found non-compliant with the State Bank of Pakistan (SBP) rules by not informing their customers about the EFT facility before activation.

President’s Ruling

Consequently, the President found the bank negligent and reversed its decision, ordering the bank to refund the defrauded amounts to the victims. The bank was given an opportunity to contest the findings but failed to provide justifications.

Significant Victory for the Victims

The President’s intervention marked a significant victory for the two citizens who had been battling to regain their lost savings since the incidents occurred. The ruling also underscored the importance of customer protection and the need for stronger measures against banking frauds.