The National Cyber Crime Agency (NCCIA) told a parliamentary panel on Tuesday that cases of online financial fraud worth Rs2-3 billion have been reported in Pakistan.
The Senate Standing Committee on IT and Telecom met at the Parliament House under the chairmanship of Senator Palwasha Khan.
NCCIA officials briefed the committee on illegal call centers and software houses operating across the country, which make fraudulent calls to ordinary citizens and trick them into fake investment schemes.
They said recently, financial fraud through WhatsApp hacking has increased, with money being extorted from friends and family by compromising accounts.
The NCCIA reported that electronic fraud in Pakistan has risen to nearly Rs3 billion. In one year, 63 call centers were raided and 450 people were arrested. Officials also disclosed that online loan companies were charging interest rates as high as 1,800%.
Many non-banking financial companies were involved in loan scams, licensed by the Securities and Exchange Commission of Pakistan (SECP) in 2020 without any strict conditions.
By downloading such apps, companies gained access to users' galleries and contact lists. Even small loans, such as Rs5,000 taken to buy food, would trap borrowers in debt cycles.
Since the SECP had not fixed any cap on interest rates, citizens often borrowed from one company to repay another. Recently, the SECP has revised its regulations: now companies cannot charge more than 100% interest on loans.
Borrowers must also provide details of three individuals as guarantors, and loan apps are no longer allowed to access photo galleries or contacts. Authorities said that action has been taken against 90% of fraudulent loan apps, and the scams have largely been brought under control.
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