Syed Saif Ul Hassan 
Oct 25, 2025
In an unsettling development emerging in the wake of rising cyber attacks, the entire IT system of the Federal Board of Revenue (FBR) has reportedly collapsed and is under the control of cybercriminals.
The grave warning was issued by the Federal Tax Ombudsman (FTO), highlighting serious security vulnerabilities within the system, making it susceptible to data manipulation and unauthorised transactions.
The FTO's warning shows that despite ongoing efforts to secure the system, issues such as data breaches, weak internal controls, and inadequate safeguards against tax fraud are still present.
The misuse of a complainant's ID password, which has been repeatedly changed each month, also gives a clue about a possible involvement of an insider, particularly from PRAL employees.
The report reflects on critical weaknesses, including a lack of alerts for unusual activity and unauthorised changes to taxpayer profiles. There are also indications of collusion between taxpayers and FBR/PRAL staff.
To address these issues, the FBR is expected to instruct various regional tax offices to initiate legal proceedings against beneficiaries of tax fraud.
The national revenue regulator is also tasked to intensify efforts to apprehend identified cybercriminals and provide a comprehensive report within 60 days.
Immediate action is required to stop the ongoing cyber attacks to allow affected taxpayers to resume normal business operations.
