Islamabad: According to the Banking Mohtasib Pakistan, a member of the Forum of Pakistan Ombudsman, complaints related to banking fraud have continued to rise despite various preventive measures introduced by regulators and financial institutions. The number of fraud-related complaints increased to 4,615 in 2025 from 4,171 in 2024 and 3,489 in 2023, highlighting an alarming trend in cybercrimes.
Pakistan’s financial inclusion gains are increasingly intertwined with cybersecurity challenges. The State Bank of Pakistan’s Pakistan Financial Inclusion Index (P-FII) for 2024 rose to 58.1 from 54.8 a year earlier, driven by stronger access (72.3) and usage (62.5) of digital and conventional financial services. Account ownership now stands at 67% of the adult population, thanks to expanded digital banking, mobile wallets, and payment channels. Yet the quality sub-index remains the weakest at 43.9, highlighting gaps in service standards, literacy, and equitable reach.
As more citizens and businesses shift to digital finance, the same infrastructure that enables inclusion also expands the attack surface for cyber threats, including fraud, data breaches, and disruptions to payment systems. The SBP’s National Financial Inclusion Strategy 2024-28 prioritises quality financial services, and securing these services through robust cybersecurity frameworks, stronger consumer protection, and coordinated efforts with bodies such as PKCERT is essential to prevent rapid digitalisation from eroding public trust.
The rapid digitisation of Pakistan’s financial system has made banking services faster and more accessible, but has also exposed customers and institutions to phishing attacks, identity theft, payment fraud, and account takeovers. According to cybersecurity company CTM360, phishing attacks in Pakistan increased tenfold between 2019 and 2023, while other cyber threats, including malware infections, stolen credentials, and payment card data leaks, increased eightfold during the same period.
Artificial intelligence experts believe banks should accelerate the deployment of AI-powered fraud detection systems to combat rising digital scams while strengthening coordination with law enforcement agencies. Muhammad Waleed, an AI quality engineering expert, said AI applications improve operational efficiency and play a critical role in detecting and preventing financial fraud, urging commercial banks to invest in advanced technologies such as AI and machine learning. He noted that AI-powered systems can analyse millions of transactions in real time, identify unusual behavioural patterns, and detect fraud with far greater accuracy than conventional rule-based monitoring systems.
Abdus Samad Khan, CEO of iPath, said Pakistani banks should modernise their fraud management frameworks by integrating AI-driven technologies across the financial ecosystem, including commercial banks, branchless banking providers, and fintech companies, stressing that fraud management systems must evolve through continuous testing, system upgrades, and feedback from cybersecurity experts and customers.
Experts stressed that investment in technology alone would not be sufficient, calling on banks to strengthen financial literacy and customer awareness programmes and improve collaboration with law enforcement agencies. They said a combination of advanced AI technologies, stronger regulatory oversight, and greater public awareness would be essential to safeguarding Pakistan’s rapidly growing digital banking ecosystem.
