Islamabad: President Dr. Arif Alvi has directed to pay 19 lakh 98 thousand 500 and 7 lakh 44 thousand rupees to 2 customers affected by bank fraud.
Two separate appeals filed by United Bank and Bank Al Falah Limited have been rejected by the President. The President said that the banking ombudsman should take up the matter before the State Bank for blacklisting the persons involved in banking fraud and issue necessary SOPs on banking fraud, not to provide banking/financial facilities to the fraudsters.
According to the details, United Bank customer Qaiser Mahmood received a call from a number similar to the bank’s helpline and the caller asked Qaiser Mahmood to activate his suspended digital banking app. were transferred.
Similarly, Brigadier (Rtd) Muhammad Arif Shaikh was called by fraudsters and asked for banking details on the pretext of clearing technical glitches in the account, on which an amount of Rs. 994,000 was withdrawn from the customer’s account through 19 transactions.
Citizens asked their respective banks to refund the money but could not get relief, citizens approached the Banking Ombudsman for relief, whereupon the Ombudsman directed the banks to refund the lost funds to the customers. Later, the banks filed separate appeals against the Ombudsman’s decisions before the President.
After hearing the cases personally, hearing the parties and perusing the available records, the President gave the decision in favor of the complainants. He said that the banks did not comply with the instructions of the State Bank regarding the implementation of monitoring system to detect fraudulent transactions, repeated and multiple transactions were made but the system was not alerted and the money was allowed to pass through the system. .
The President said that the banks also failed to establish the legality of the transaction as per Section 41 of the Payment System and Electronic Fund Transfers Act, 2007. Banks are liable to compensate the financial loss of the complainants.
The President asked United Bank and Bank Al Falah to pay Rs 1,998,500 and Rs 744,000 respectively to Qaiser Mehmood and Brigadier (Rtd) Arif Shaikh.
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