AS an increasing number of people opt to use digital channels for banking and other financial transactions, cyber criminals have sought to defraud simple, unsuspecting people by soliciting their sensitive information.

Whereas more `traditional` methods include physically robbing banks or mugging people coming out of ATMs, the tech-savvy crook seeks the credentials of the unaware customer, sometimes posing as a banker, at other times pretending to represent a law enforcement or intelligence agency. People have lost millions of rupees to such high-tech criminals. In a recent incident, the FIA managed to bust a gang of cybercriminals in Rawalpindi after a victim, who had been swindled out of nearly Rs2m, reported the theft. The individual said the suspects had obtained his personal information, after which they started to plunder his accounts.

While more sophisticated digital frauds have involved hackers breaching the defences of major banks and even government institutions, relatively small-time crooks prey on simple folks.

For example, they can trap customers by impersonating bank officials, and sometimes appearing to call from the banks` official numbers, and demanding sensitive information such as OTPs, CNIC numbers or other personal data. This is so, despite the fact that all government bodies concerned, as well as banks, run regular public information campaigns warning customers not to share their personal information with anyone, including those claiming to be representatives of financial institutions. But it is also true that in some cases black sheep within banks may be in cahoots with cybercriminals, and leak customers` data to these gangs. According to media reports, in Punjab alone last year, there were over 7,000 complaints of crooks trying to obtain people`s banking credentials. The significance of this malevolent trend can be gauged by the fact that the president, as well as the State Bank, have taken up the matter, and warned banks to crack down on this racket. Yet many customers complain the FIA does not follow up on their complaints, while the agency claims it is too understaffed to deal with the deluge of cases.

The public, banks and LEAs all have a role to play in addressing digital banking fraud. People should be careful and under no circumstances share their credentials with random callers. In fact, suspicious calls should be reported to the authorities, while customers must double check with their bank after receiving them. Meanwhile, banks need to put in place robust cybersecurity features that make it difficult for fraudsters to access data or customers` accounts. Some action has been taken in this regard, but banks can do more to crack down on cybercrime. As for LEAs, the excuse of being understaffed is weak. The FIA needs to proactively go after crooks indulging in online banking fraud, so that people can use digital financial instruments with confidence.