Rising online scams in Pakistan: Phishing and fraud targeting millions

From 2021 to 2023, FIA Pakistan lodged approximately 386,602 complaints highlighting growing concern regarding digital offences

Pareesa Afreen - Oct 28, 2024

As Pakistan's internet user base expands, online scams have emerged as a pervasive threat, claiming thousands of victims and inflicting considerable financial losses. The alarming rise of phishing, social media impersonation, and fake websites has left many questioning the safety of their digital transactions.

After receiving a message claiming to be from the Federal Board of Revenue (FBR), Ammar, a 30-year-old car showroom owner, hastily shared all his sensitive information to avoid potential legal consequences. Later, he discovered it was a phishing scam.

"After falling victim to the phishing scam, I faced significant financial losses. The scammers used my sensitive information to access my bank accounts and withdraw a substantial amount of money. I lost around Rs500,000 (approximately $1,500), which was a significant blow to my savings. Additionally, I had to spend more on credit monitoring services and identity theft protection."

Upon asking what immediate steps he took to report the incident, Ammar told Gadinsider: "I immediately contacted my bank's customer support to report the unauthorised transactions. They guided me through the process of cancelling my cards and issuing new ones. I also filed a complaint with the Federal Investigation Agency's (FIA) Cybercrime Wing, providing them with all relevant details, including the fake FBR message and transaction records."

Ammar's case is only one of the many representing the millions of Pakistanis who fall victim to such online frauds daily. Gadinsider exclusively interviewed cybersecurity experts about today's cybercrime landscape, noting a steep rise in phishing, identity fraud on social media, and fake websites.

These scams have consequences that go beyond just financial loss; they shatter trust and leave victims deeply distrustful of the digital world.

Online scams targeting millions of Pakistan's internet users have been growing fast in recent years. As the country’s digital presence expands, online scams have increased in tandem.

But what exactly are online scams, and how can you protect yourself?

Understanding online scams

Online scams refer to fraudulent activities designed to trick people into divulging sensitive information or transferring money. Common tactics include phishing, social media impersonation, and fake websites.

Rising online scams in Pakistan: Phishing and fraud targeting millions

In 2023, Pakistan's Federal Investigation Agency (FIA), according to its 2023 Cyber Crime Wing annual report, registered 18,484 enquiries, marking a significant response to cyber-related offences in the country. This wing also registered 1,374 cases and successfully submitted 882 challans before trial courts. As a result of FIA’s investigative efforts, 92 cases led to convictions, reflecting the agency's resolve in combating cybercrime effectively.

According to a reserach paper titled 'Emerging Cyber Crimes in Pakistan: A Case Study of Online Fraud through Digital Microloan Apps' (2023) by Muhammad Shahzad — assistant controller, examination branch, University of the Punjab, Lahore —, 91% of Pakistani consumers often ignore warning signs related to online criminal activities, increasing their vulnerability to scams.

While talking to Gadinsider, Usman Shahid, co-leader of the digital investigation initiative Facter and Leading Digital Rights Monitor at Media Matters for Democracy (MMfD), highlighted: "Through imposter accounts on Facebook, scammers target individuals who travel or are based abroad, particularly students, feigning family emergencies and requesting money into random easypaisa or JazzCash accounts."

"Callers purporting to be from the spy agencies and central bank intimidate targets into disclosing sensitive banking information, leading to back-to-back fraudulent transactions," he added.

Pakistan's digital payment growth brings convenience and financial inclusion but also increases cybercrime risks. The FIA reported alarming rises in e-banking users (71%), transactions (112%), and transaction values (152%), highlighting the need for enhanced security measures.

Shahid further noted that scammers “openly sell personal information of affected individuals in Facebook groups, highlighting the urgent need for data protection laws."

"Users need to be more vigilant to prevent cybercrimes," he warned. "Refraining from posting updates on mobility, hiding friend lists, locking profiles, and avoiding suspicious links and DMs can help."

"We've seen scammers target individuals abroad, especially students, through imposter Facebook accounts and deceptive phone calls posing as government agencies," Shahid added.

Cybercrime complaint statistics: 2021-2023

The FIA has reported a significant increase in cybercrime complaints over the past few years in its annual report.

From 2021 to 2023, approximately 386,602 complaints were lodged, highlighting the growing concern regarding digital offences. Specifically, in 2021, there were 115,868 complaints, which increased by 17% to 136,024 in 2022 and slightly decreased to 134,710 in 2023.

Rise of phishing scams

Phishing scams involve fraudulent emails, texts, or messages that trick a victim into sharing sensitive information. Recently, phishing scams in Pakistan have surged, with scammers posing as government officials, banks, and well-known companies.

To combat the growing threat of online scams, experts recommend increased awareness and vigilance. "Digital literacy is key," stressed Haroon Balouch, a Digital Rights Activist, in his conversation with Gadinsider. "By promoting digital literacy and responsible online behaviour, we can protect Pakistan's internet users."

Dozens of Facebook groups reportedly sell sensitive information, including NADRA data, SIM and phone records, and location data. According to FIA Deputy Director Cyber Crime Asif Iqbal, data theft and misuse are rampant.

Ammar told Gadinsider that now he is taking cautionary steps to save his online accounts. “To safeguard my online presence, I've taken proactive measures, including enabling two-factor authentication, using strong unique passwords, setting up account alerts, and installing reputable antivirus software,” the victim emphasised.

How to protect yourself from online scams

Online scams are on the rise, targeting millions of internet users worldwide. Stay safe with these essential tips:

Be cautious

Verify websites: Check URLs to ensure they’re legitimate and secure (look for "https").
Be wary of emails: Avoid opening suspicious emails or attachments.
Watch for spelling mistakes: Legitimate companies rarely have typographical errors.

Secure your accounts

Use strong passwords: Combine letters, numbers, and symbols.
Enable two-factor authentication (2FA): Add an extra layer of security.
Monitor account activity: Regularly review bank and credit card statements.

Avoid phishing traps

Don’t click on suspicious links.
Never provide sensitive information (passwords, CNIC, etc.) unless you’re sure of the recipient's authenticity.
Verify caller identity and avoid responding to unknown numbers.

Stay informed