Mobile banking fraud is on the rise in Pakistan with criminals hacking banking apps and stealing money from citizens accounts through fraudulent SIM cards and stolen customer data.
Sources in the National Cyber Crime Investigation Agency (NCCIA) said complaints of online financial fraud and theft have increased, surpassing even reports of online harassment.
Bank accounts belonging to ordinary citizens and parliamentarians have reportedly been targeted.
Following directions from the Standing Committee on Interior, joint teams comprising officials from the State Bank of Pakistan, NCCIA and Pakistan Telecommunication Authority (PTA) are to be formed to investigate the cases and take action against banks, fraudulent SIM issuers and the franchises involved.
According to NCCIA sources, bank employees, telecommunications staff and fraudsters are allegedly working together in organised gangs.
Customer information is reportedly leaked by bank employees, while telecom franchises issue duplicate SIM cards without authorisation.
The criminals then use these SIM cards to receive one-time passwords (OTPs) and access victims mobile banking accounts.
The original SIM card stops working, leaving customers unaware of the fraud until they restore their service and discover that their money has been stolen.
Sources said the stolen funds are quickly transferred through multiple accounts using branchless banking services, which makes it difficult to trace the transactions and recover the money.
JazzCash and Easypaisa have reportedly been linked to a significant number of complaints, according to NCCIA sources.
The allegations underline growing concerns about the security of digital financial services and the need for stronger safeguards against identity theft and unauthorised transactions.
