Karachi, April 22, 2025 – A leading bank has come under scrutiny after its failure to prevent a major fraudulent incident led to unauthorized withdrawals totaling over Rs7.3 million.
The matter was investigated and resolved by the Banking Mohtasib of Pakistan (BMP), who ruled in favor of the affected customer.
According to official findings by the BMP, the complainant alleged that on January 18, 2024, a staggering Rs7,316,500 was unlawfully debited from his bank account. The amount was siphoned off through 34 Internet and mobile banking transfers in a single day—despite the fact that his daily online transaction limit was set at Rs500,000 and his ATM card had already expired.
The Mohtasib’s investigation confirmed that the scale and pattern of these transactions were highly suspicious and should have been flagged by the bank’s monitoring systems. Despite State Bank of Pakistan’s clear directives to implement real-time fraud detection tools, the bank failed to detect or stop the fraudulent activity as it unfolded.
Notably, the bank’s 24/7 monitoring system failed to trigger any alerts or place a hold on the account during the unusual surge of transfers, all conducted in one day. The BMP observed that 34 IBFT (Inter-Bank Funds Transfer) transactions in such a short time frame represented a highly irregular pattern that typically signals fraudulent activity. Yet, no intervention occurred to prevent the loss.
The BMP criticized the bank for its subpar security infrastructure, noting that its system appeared incompatible with international standards, leaving customer accounts vulnerable to cyber threats and fraudulent attacks.
After the case was reviewed, the bank acknowledged the lapse in its security protocol and agreed to refund the full amount of Rs7,316,500 to the complainant’s account. This resolution was accepted with satisfaction by the affected customer.
This incident serves as a wake-up call to the banking industry, highlighting the urgent need for robust, real-time monitoring systems that can detect and prevent fraudulent activities before irreversible losses occur.