Fraud complaints lodged with Banking Mohtasib Pakistan climbed to 4,615 in 2025, up from 4,171 a year earlier and 3,489 in 2023, underscoring the rising pressure on the country’s banking system amid rapid digital expansion.
Rising Cyber Threats Outpace Traditional Defences
Phishing attacks surged tenfold between 2019 and 2023, while other cyber threats, including malware and stolen credentials, rose eightfold over the same period, according to cybersecurity firm CTM360.
Conventional rule-based monitoring systems are struggling to keep pace with increasingly sophisticated tactics such as fake social media ads, UAN spoofing and identity theft.
AI Offers Real-Time Edge Over Rule-Based Systems
AI-powered platforms can analyse millions of transactions in real time, flag unusual behavioural patterns and stop suspicious activity before funds leave accounts.
Muhammad Waleed, an AI quality engineering expert, said the technology improves both speed and accuracy by combining machine learning, deep learning and big data analytics.
Banks, regulators and technology providers must therefore build technical capacity to deploy these systems effectively across commercial banks, branchless banking and fintech platforms.
Continuous Innovation Is Essential for Fraud Prevention
Abdus Samad Khan, CEO of iPath, called for continuous testing, upgrades and expert feedback so that fraud-management systems evolve as fast as the threats themselves.
Pakistan’s financial inclusion index reached 58.1 in 2024, with account ownership at 67 percent, yet the quality sub-index lagged at 43.9, highlighting gaps in service standards and security.
The State Bank of Pakistan’s National Financial Inclusion Strategy 2024-28 prioritises consumer protection and stronger cybersecurity frameworks in coordination with PKCERT.
A Multi-Layered Approach Is Critical
Experts stress that technology alone is not enough. AI must be paired with financial literacy campaigns, customer awareness drives, tighter regulatory oversight and closer cooperation with law-enforcement agencies.
Without this multi-layered approach, the same digital channels that expand access risk eroding public trust through higher fraud losses.