How to Report and Recover from Online Bank Fraud in Pakistan

Learning and Resources
1

To report and recover from online bank fraud in Pakistan, follow this detailed legal guide, incorporating relevant statutes and case laws.

  1. Immediate Actions:
  • Notify the Bank: Immediately inform your bank about the fraudulent transaction. This will help them to freeze your account or take other necessary actions to prevent further losses.
  • Change Credentials: Change all your online banking passwords and PINs to secure your account.
  1. Filing a Complaint
  • Pakistan Penal Code, 1860**, Section 28** states that the provisions of the Pakistan Penal Code, 1860 apply to the offences provided in this Act, to the extent not inconsistent with anything provided in this Act.
  • Prevention of Electronic Crimes Act, 2016, Section 1 states that This Act may be called the Prevention of Electronic Crimes Act, 2016 and It extends to the whole of Pakistan.
  • Prevention of Electronic Crimes Act, 2016, Section 50 states that The provisions of this Act shall have effect not in derogation of the Pakistan Penal Code, 1860
  • FIA Cyber Crime Wing: Lodge a complaint with the Federal Investigation Agency (FIA) Cyber Crime Wing. You can do this online or in person.
    • Website: FIA Cyber Crime Reporting.
  • Required Information:
    • Your personal details (name, address, contact number).
    • Account details (account number, bank name, branch).
    • Details of the fraudulent transaction (date, time, amount).
    • Any evidence you have (screenshots, emails, SMS).
  1. Legal Procedure
  • Investigation: The FIA will investigate the matter. Ensure you provide all necessary documents and cooperate fully.
  • Filing FIR: If the FIA finds evidence of a crime, they will register a First Information Report (FIR).
  • Court Proceedings: The case will be presented in court, and you may be required to testify.
  1. Relevant Laws
  • Prevention of Electronic Crimes Act, 2016: This law deals specifically with cybercrimes, including online banking fraud.
  • Pakistan Penal Code: Various sections, such as Section 420 (cheating) and Section 406 (criminal breach of trust), may apply.
  1. Documentations
  • Bank Statement: Obtain a detailed bank statement showing the fraudulent transactions.
  • CNIC Copy: Provide a copy of your Computerized National Identity Card (CNIC).
  • Application Copy: Keep a copy of the complaint application submitted to the bank and FIA.
  • All relevant Records Pertaining to the loan needs to provided to commissoner as provided in The Bank of Punjab v. Nina Industries Limited, 2011 CLC 1812 states.
  1. Relevant Forums
  • Banking Courts: For recovery of money.
  • Special Courts (Offences in Banks): for fraud and forgery in case of any offence against the bank, as mentioned in Amjid Ali and another Versus The State and another, 2013 YLR 548.
  • Consumer Courts: As held in ALLIED BANK LTD, FAISALABAD v. KHALID MEHMOOD, 2013 CLC 1133 they would has the jurisdiction as damage as defined in Section 2(d) of the Punjab Consumer Protection Act, 2005, was wide enough to cover the losses suffered by the account holders due to the fraud committed by the bank employees.
  1. Case Laws and Legal Principles
  • Strict Compliance: Banking Courts must strictly follow the procedures laid down in special statutes like the Financial Institutions (Recovery of Finances) Ordinance, 2001, as highlighted in Nazir Hussain and another Versus Bank of Punjab through Manager, 2007 CLD 687.
  • Documentary Evidence: Documentary evidence is crucial in banking recovery suits, as seen in WASEEM YOUSUF—Appellant Versus STANDARD CHARTERED BANK (PAKISTAN) LIMITED—Respondent, 2013 CLD 600. If the borrower fails to rebut the bank’s evidence, the court may rule in favor of the bank.
  • Fraudulent Withdrawal An employee fraudulently withdrawn amount cannot be considered loan. United Bank Ltd. v. Muhammad Sadiq, 2009 CLC 634, clarifies that amounts obtained fraudulently by an employee are not considered loans under the banking system, and such employees are not considered customers under the Banking Companies Act.
  • Insurance Claim: A Bank doing insurance claim does not preclude a financial institution from pursuing recovery suits against debtors as clarified in Riaz Ahmad (Rana Riaz Anjum) and another—Appellants Versus The Bank Of Punjab—Respondent, 2016 CLD 596
  • Adequate Documentary Evidence: Banks must provide adequate documentary evidence to support their claims and adhere to legal requirements for verifying statements of accounts as highlighted in Muhammad Mujtaba and 5 others v. The Bank of Punjab, 2004 CLC 712.
  1. Suggestions, Recommendations, and Tips
  • Be Vigilant: Regularly check your bank statements for any unauthorized transactions.
  • Secure Devices: Ensure your computer and smartphone are protected with strong passwords and updated antivirus software.
  • Avoid Phishing: Be cautious of phishing emails or calls asking for your banking details.
  • Legal Advice: Consult with a lawyer specializing in banking and cybercrime for personalized advice.
  • Cooperate with investigators: Fully cooperate with FIA during investigation.

Conclusion:

To effectively report and recover from online bank fraud in Pakistan, it is essential to take immediate action by notifying the bank and securing your account. Then, file a detailed complaint with the FIA Cyber Crime Wing, providing all necessary documentation. Understanding the relevant laws, such as the Prevention of Electronic Crimes Act, 2016, is vital. Be vigilant about your online banking activities, secure your devices, and seek legal advice when needed. The case laws mentioned above reinforce the importance of documentary evidence, strict compliance with procedures, and the accountability of financial institutions.