The Federal Constitutional Court has ordered MCB bank to refund a defrauded citizen, ruling firmly in the favour of victim after multiple earlier verdicts against the bank.
A two-member bench, led by Justice Aamir Farooq, heard the online banking fraud case and dismissed the appeal filed by MCB without any relief or concession granted to it.
According to the verdict, the court directed the private bank to fully return the stolen amount of Rs. 1.534 million to the affected citizen from Layyah district.
The fraudulent withdrawals had taken place in 2022, when the funds were removed from the account of the customer without his knowledge, consent, or any authorisation.
Justice Aamir Farooq stated during the hearing that hackers are embedded within bank systems, giving them access to sensitive customer data before accounts are even fully opened.
He said customer data reaches fraudsters even before the account activation process is complete, indicating a deep and systemic vulnerability within banking institutions across Pakistan.
The judge also raised a pointed question, asking where ordinary citizens should turn when money disappears from their accounts without explanation or warning.
Judge reveals personal fraud attempt
Justice Aamir Farooq disclosed to the court that he himself had received a fraudulent call from someone impersonating a representative of a private bank recently.
The caller had instructed him to share a one-time password, threatening that his bank account would be blocked if he refused to comply immediately with the demand.
The judge said he had not used that account for several years and therefore instructed the bank directly to close it rather than engage with the caller.
He added that he does not personally use online banking accounts, and reiterated that banks must take full responsibility for securing their digital infrastructure from internal threats.
The lawyer of the private bank argued that the citizen had transferred the funds himself using the official mobile application of bank, denying that any external fraud had occurred.
The citizen, however, maintained that his mobile number had been stolen, which the fraudsters then used to gain unauthorised access to his linked bank account.
The court noted that the Banking Ombudsman, the President of Pakistan, and the High Court had all previously ruled against MCB in this same case.
