The Banking Ombudsman Pakistan, Sirajuddin Aziz on Monday highlighted concerning trends in internet banking fraud and the shadow banking system within the country.
Addressing a press conference, he said that a total of 4,037 complaints were registered in 2023, marking a substantial rise from the 2,574 cases reported in the previous year.
Moreover, Aziz shed light on the shadow banking system, noting that 3,626 complaints were received in 2023, raising concerns about fraudulent activities involving bank staff.
To combat this growing issue, the Banking Ombudsman has proposed a framework aimed at protecting the public from internet banking fraud and shadow banking system.
The proposed plan involves collaboration between NADRA, PTA, and the State Bank to collect and consolidate customer data, enabling swift action against fraudulent activities.
Under this framework, bank accounts linked to fraudulent activities will be frozen, and individuals involved will be barred from opening new accounts. While the proposal is still in its initial stages, discussions are underway among relevant institutions.
Mr Aziz also shared statistics from 2023, revealing that over Rs 1.026 billion was returned to bank customers by the banking ombudsman, addressing 36,437 complaints received during the year.
The majority of these complaints originated from Punjab (16,622), followed by Sindh (7,000), and Khyber Pakhtunkhwa (2,800). Through mediation and hearings, 21,886 complaints were resolved, with 676 cases decided in favor of the customers.
Since its establishment in 2005, the banking ombudsman institution has disbursed a total of Rs 6.04 billion to customers, underscoring its commitment to resolving banking-related grievances and ensuring consumer protection.
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