In Pakistan, banks found vulnerable to online fraud

Official says digitalisation can be obstacle rather than boon if not fully secured

KARACHI:

The Covid-19 pandemic has enhanced the pace of Pakistan’s transformation to a digital economy, however, banks in the country are still losing an estimated Rs1 billion in online fraud every year, said Habib Bank Limited Chief Operating Officer Sagheer Mufti.

Speaking at the 12th International Information Security Conference of Pakistan, Mufti said after eradication of the Covid-19 pandemic, cybersecurity would emerge as one of the top risks for the entire world.

“Online fraud such as fake phone calls to retrieve personal information and ATM scamming can alone cost the local banking industry up to Rs1 billion a year,” he said. “Thus, digitalisation can be a hindrance rather than a boon for Pakistan if it is not fully secured.”

He revealed that Pakistan had been a victim to at least 11 suspected state-sponsored cyber operations since 2009.

According to him, the cybersecurity market will grow by 12-15% through 2021 while global spending on cybersecurity will exceed $1 trillion from 2020 to 2025.

He voiced fear that a single cyberattack could jeopardise online businesses and services in the country. “The cost of reputational damage cannot be aggregated and you lose market share to competitors,” he said.

Speaking on the occasion, IBM Security Services Global Lead Partner Dr Tamer Aboualy pointed out that Pakistan had a vulnerable cybersecurity infrastructure and organisations were using security devices which were easy to misuse and conduct cyberattacks.

This has increased the risk of compromising customers’ data at thousands of organisations in the country, he said.

Particulars of Pakistan’s credit cards such as card number and PIN code had been on sale in black markets several times in the recent past, he said.

“Security breaches cost on average $4 million to the attacked and hacked organisations in 2019,” he said. “The world has witnessed 2000% year-on-year increase in attacks targeting operational technology (OT).”

Published in The Express Tribune, August 30^th, 2020.

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