The Federal Constitutional Court has dismissed an appeal filed by Muslim Commercial Bank (MCB) in an online banking fraud case involving a resident of Layyah and ordered the bank to return the defrauded amount to the customer.
The case was heard by a two-member bench headed by Justice Aamer Farooq, who raised concerns over weaknesses in the banking system and increasing incidents of digital fraud.
During the hearing, Justice Farooq remarked that hackers often appear to have access to customer data even before bank accounts are formally opened, suggesting possible vulnerabilities within banking systems.
He also highlighted the growing trend of fraudulent phone calls in which customers are pressured into sharing one-time passwords (OTPs) under threats that their bank accounts would otherwise be blocked.
The judge said that some dormant accounts had reportedly been shut down without any transactions taking place for years, stressing that banks must improve their security mechanisms to protect ordinary citizens.
The bank’s counsel argued that the account holder had conducted the transactions through the banking application. However, the affected citizen maintained that their mobile number had been compromised and misused by fraudsters.
The court observed that earlier decisions by the President, Banking Ombudsman, and High Court had already ruled in favor of the customer.
