ISLAMABAD – Bank account of Pakistani user was hit by alleged online banking fraud in 2022, with Rs. 1.5 million withdrawn without authorization, and now Federal Constitutional Court dismissed MCB appeal and upheld earlier decisions in favor of the consumer.
The case, involving massive online fraud of 15.30 Lac from a resident of Layyah in 2022, had already seen repeated rulings against the bank from multiple authorities, yet the institution continued to fight the case all the way to the top constitutional forum.
The case decided against the bank by the Banking Ombudsman, followed by a further adverse ruling from the President of Pakistan, and later a confirmation of liability by the High Court. Despite these consecutive setbacks, the private bank, identified as MCB Bank, pressed forward with its legal challenge before the Federal Constitutional Court.
During proceedings, Justice Amir Farooq delivered striking observations that added further weight to the already sensational case. He remarked that “all hackers are actually present within banking systems themselves,” suggesting systemic vulnerabilities in financial institutions.
He further noted that account access is often compromised internally before any transaction is even visible to the account holder, raising alarming questions about digital banking security across the country.
Justice Amir Farooq ruled that even he had received fraudulent calls. The callers reportedly instructed him to share an OTP (One-Time Password) or risk his account being blocked.
He added that since he does not actively use online banking, he suggested closing the dormant account instead. Emphasizing systemic responsibility, he stressed that banks must strengthen their security frameworks, questioning: “Where are ordinary citizens supposed to go if their money is stolen from accounts?”
The bank’s legal counsel argued before the court that the customer himself had conducted transactions through a mobile application. However, the citizen maintained that his mobile number had been compromised, leading to unauthorized access and fraudulent withdrawals.
Banking Ombudsman, the President of Pakistan, and the High Court had all previously ruled against the bank, holding it responsible for the financial loss.
The hearing was conducted by a two-member bench headed by Justice Amir Farooq, marking a decisive end to a case that has highlighted deep concerns over online banking security, institutional accountability, and rising cyber fraud in Pakistan’s financial system.
