KARACHI: Banking and cybersecurity experts have called for the adoption of advanced artificial intelligence (AI)-driven security systems to combat the growing threat of online fraud and cybercrime in Pakistan’s expanding digital banking sector.
According to the Banking Mohtasib Pakistan, complaints related to banking fraud have continued to rise, reaching 4,615 cases in 2025, up from 4,171 in 2024 and 3,489 in 2023, reflecting a steady increase in cyber-enabled financial crimes.
Meanwhile, the State Bank of Pakistan’s Financial Inclusion Index (P-FII) 2024 showed that the country’s financial inclusion score improved from 54.8 to 58.1, with 67% of adults now holding bank accounts. However, the quality index remained unchanged at 43.9, highlighting ongoing concerns over service quality, financial literacy and cybersecurity.
Experts warned that the rapid growth of digital banking has been accompanied by increased risks of phishing, identity theft, payment fraud and account takeovers, making modern security systems essential.
AI quality engineering specialist Muhammad Waleed said AI and machine learning can analyze millions of financial transactions in real time, enabling banks to quickly detect suspicious activity and prevent fraud more effectively than traditional monitoring systems.
He urged banks, regulators, fintech companies and other stakeholders to invest in AI-powered fraud detection and strengthen their technological capabilities to counter evolving cyber threats.
Cybersecurity firm CTM360 reported that phishing attacks in Pakistan increased tenfold between 2019 and 2023, while malware incidents, stolen credentials and payment-related cyber threats rose eightfold during the same period.
iPath CEO Abdul Samad Khan said banks, branchless banking providers and fintech firms should adopt AI-driven fraud management systems, arguing that conventional security measures are no longer sufficient against increasingly sophisticated cybercriminals.
