Private bank ordered to refund victim in online fraud case

ISLAMABAD – The Federal Constitutional Court (FCC) has directed a private bank to return funds lost by a citizen in an online banking fraud case. A two-member bench, led by Justice Aamer Farooq, heard the case when he highlighted systemic vulnerabilities in banking, noting that “hackers often operate from within the banks’ systems; accounts are opened later, but the data reaches them first.” He also shared instances of fraudulent calls pressuring account holders, saying, “People are threatened that if they don’t share their OTP, their account will be blocked. Some accounts with no transactions for years were suddenly closed. Banks must strengthen their systems; where else are ordinary citizens supposed to turn?” The bank’s lawyer claimed the account holder had made transactions through the app, while the citizen argued their number had been stolen. The court noted that prior rulings by the President, Banking Ombudsman, and High Court were in favor of the customer. The Federal Constitutional Court dismissed the bank’s appeal, affirming the directive to refund the victim.