Pakistan Faces Rs. 3 Billion Annual Loss from Cyber Fraud, Senate Committee Reveals
Pakistani lawmakers are raising serious concerns after learning that the country loses more than Rs. 3 billion every year to cyber criminals. The Senate Standing Committee on Information Technology and Telecommunications received shocking details about online fraud during a recent meeting chaired by Senator Palwasha Khan.
Officials from the National Cyber Crimes Investigation Agency (NCCIA) told the committee that more than 60% of all complaints they receive are linked to electronic crimes, with financial fraud in Pakistan estimated at over Rs. 3 billion annually. The real numbers could be much higher because many victims never report these crimes to authorities.
How Cyber Criminals Target Pakistani Citizens
The NCCIA briefing revealed disturbing tactics used by fraudsters across Pakistan. Citizens fall into traps through fake courier calls, mobile verification codes, and phishing scams that look like legitimate messages. WhatsApp accounts get hacked for up to 12 hours, giving criminals enough time to trick family members and friends into sending money.
During the Senate session, officials shared data showing the massive scope of the problem. In just one year, law enforcement agencies conducted 63 raids on illegal call centers and arrested 450 suspects. These operations uncovered fraud cases worth Rs. 720 million, but investigators believe this represents only a small portion of total losses.
Loan App Scams Exploit Vulnerable Citizens
One of the most concerning trends involves predatory loan applications that charge interest rates up to 1,800%. These apps access users’ photo galleries and contact lists, then use personal information to harass borrowers and their families. Many victims face public embarrassment when fraudsters share private photos or threaten to contact their employers.
The committee learned that these illegal lending apps operate without proper licenses from the Securities and Exchange Commission of Pakistan (SECP). They target people facing financial difficulties, offering quick loans with hidden fees and impossible repayment terms.
Telecom Regulation Failures Under Senate Scrutiny
Senators also criticized the Pakistan Telecommunication Authority (PTA) for failing to provide adequate oversight of the telecom sector. Committee members expressed anger over Jazz’s tariff approvals worth more than Rs. 6 billion, where audit officials claimed they could not access relevant records.
Senator Anusha Rahman accused the PTA of damaging private sector reputation by failing to implement proper regulatory controls. She pointed out delays in telecom tribunal appointments and spectrum-related cases pending in multiple courts as evidence of systemic problems.
NCCIA’s Response to Growing Cyber Threats
From April to July 2025, the NCCIA reported handling 50,500 cybercrime complaints, filing 457 FIRs, and making 690 arrests, highlighting a significant rise in cybercrime activity. The agency has gained new powers to freeze properties connected to cybercrime, representing a major expansion of its authority.
Recent operations have targeted international fraud networks operating from Pakistan. Between January 2024 and June 2025, authorities conducted 63 raids across six cities, arresting 195 Pakistanis and 255 foreigners involved in cyber-related crimes. These networks often use fake call centers to scam victims in other countries.
Senate Demands Immediate Action
The committee directed the PTA, SECP, and Ministry of IT to present complete records at their next meeting. Lawmakers also summoned the Law Ministry to explain delays in appointing telecom tribunal members, which has created a backlog of unresolved cases.
Senator Palwasha Khan emphasized that protecting citizens from cyber fraud requires coordination between multiple government agencies. The committee wants stronger regulations for loan apps, better telecom oversight, and faster prosecution of cybercriminals.
Protecting Yourself from Cyber Fraud
Citizens can take several steps to avoid becoming victims of online scams:
- Never share verification codes received via SMS with anyone
- Verify courier delivery calls through official company numbers
- Avoid downloading loan apps that request excessive permissions
- Report suspicious WhatsApp messages to contacts immediately
- Use official banking channels for all financial transactions
- Check company licenses on SECP and PTA websites before investing
Government Response and Future Plans
The Senate committee’s revelations highlight the urgent need for comprehensive cybersecurity reforms in Pakistan. Officials acknowledge that current laws and enforcement mechanisms are not keeping pace with rapidly evolving fraud techniques.
The Ministry of IT has promised to work with international partners to track cross-border cybercrime networks. New regulations for digital lending platforms are also under consideration, with stricter licensing requirements and consumer protection measures.
Economic Impact on Pakistan’s Digital Growth
The Rs. 3 billion annual loss from cyber fraud represents a significant drain on Pakistan’s economy. This figure does not include indirect costs like reduced consumer confidence in digital payments and online shopping. Many businesses report that fraud concerns are slowing their digital transformation efforts.
Banking sector representatives have called for stronger identity verification systems and real-time fraud detection capabilities. The State Bank of Pakistan is working with commercial banks to implement advanced security measures for online transactions.
