Pakistan records surge in digital fraud complaints

Banking Mohtasib Pakistan (BMP) Sirajuddin Aziz has revealed that the institution provided relief amounting to Rs1.65 billion to banking customers during the calendar year 2024, amid a notable rise in complaints against digital and electronic banking platforms.

Addressing a press conference during the release of BMP’s Annual Report 2024, Mr Aziz expressed serious concern over the growing number of fraud cases and account blockages linked to mobile and digital banking applications.

“A significant increase was recorded in fraud-related complaints and unjustified account blockages by banks,” he stated.

He attributed the rise not only to the rapid growth of digital banking but also to inefficiencies in banking services, adding that relevant stakeholders, including the State Bank of Pakistan (SBP), had been informed of these systemic issues.

During 2024, BMP resolved 27,753 complaints, providing Rs1.65bn in monetary relief, a substantial increase compared to Rs1.26bn in 2023. Including pending cases from the previous year, the BMP dealt with a total of 41,546 complaints in 2024.

Since its inception in 2005, the Banking Mohtasib has provided cumulative relief of Rs8 billion to customers.

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Mr Aziz noted a 6% year-on-year increase in complaints against commercial banks and highlighted the inclusion of newly established digital banks within BMP’s jurisdiction.

This, he said, calls for enhanced staffing and capacity building, particularly in Fintech-related operations.

He also criticized banks for their ineffective public awareness campaigns, stating that despite efforts to educate consumers about fraud prevention through electronic and print media, the results remain unsatisfactory.

He urged banks to redouble their efforts to better protect customers from digital scams and forgeries.