#SBP binds banks to compensate depositors in #digital #scams
#KARACHI (MNP) – All #commercial and #microfinance #banks in #Pakistan will compensate their account holders in time in cases of #digital #fraud and other #social engineering, the #StateBank of #Pakistan (#SBP) has made it clear.
“Banks are required to #compensate the #customers owing to delay on their part in taking timely remedial and control measures such as delay in blocking digital channels, delay in raising dispute requests, etc.,” the central bank said in a statement.
Commercial banks and microfinance banks have been directed to improve their digital fraud protection controls and processes to combat social engineering and other digital banking frauds.
The central bank warned that banks would be held responsible for the loss of any customer funds due to delays on their part in taking timely remedial and control preventive measures.
“These new measures are part of wider SBP objective to enhance digital financial inclusion and promote digital financial services by creating and enhancing customer trust in the safety, security and soundness of the digital banking ecosystem,” it said.
“With the increasing adoption and usage of digital banking in Pakistan by a large number of financial services users, fraudsters have been taking advantage of the lack of awareness among customers,” it said.
The SBP said it had been in constant consultation with the banking industry and other stakeholders to devise controls against sophisticated fraud techniques such as spoofing of banks’ official helpline numbers, SIM swap attacks, identity theft, false registrations, etc. as well as focusing on consumer awareness programme by SBP and banks.
