As scams are increasing day by day, the adoption of artificial intelligence (AI) could significantly reduce fraud and cyber scams in Pakistan's banking sector by enabling financial institutions to detect suspicious transactions in real time and prevent financial losses for customers and banks, industry experts say. According to the Banking Mohtasib Pakistan, complaints related to banking fraud have continued to rise despite various preventive measures introduced by regulators and financial institutions. The number of fraud-related complaints increased to 4,615 in 2025 from 4,171 in 2024 and 3,489 in 2023, highlighting an alarming trend in cybercrimes.
Pakistan's financial inclusion gains are increasingly intertwined with cybersecurity challenges. The State Bank of Pakistan's Pakistan Financial Inclusion Index (P-FII) for 2024 rose to 58.1 from 54.8 a year earlier, driven by stronger access (72.3) and usage (62.5) of digital and conventional financial services. Account ownership now stands at 67% of the adult population, thanks to expanded digital banking, mobile wallets and payment channels.
Yet the quality sub-index remains the weakest at 43.9, highlighting gaps in service standards, literacy and equitable reach. As more citizens and businesses shift to digital finance, the same infrastructure that enables inclusion also expands the attack surface for cyber threats, including fraud, data breaches and disruptions to payment systems. The SBP's National Financial Inclusion Strategy 2024-28 prioritises quality financial services.
Securing these services through robust cybersecurity frameworks, stronger consumer protection and coordinated efforts with bodies such as PKCERT (Pakistan Computer Emergency Response Team) is essential. Without adequate safeguards, rapid digitalisation that has lifted access and usage risks eroding public trust and undermining the very inclusion gains recorded so far. Balancing expansion with resilience will determine whether financial inclusion delivers lasting economic benefits.
The rapid digitisation of Pakistan's financial system has made banking services faster, more convenient and widely accessible. However, it has also exposed customers and financial institutions to an increasing number of cyber threats, including phishing attacks, identity theft, payment fraud and account takeovers. Artificial intelligence experts believe bank…
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