A major online banking fraud case involving MCB has reached its conclusion after the Federal Constitutional Court dismissed the bank’s appeal and upheld earlier decisions in favor of a customer from Layyah.
The case relates to an alleged online banking fraud that occurred in 2022, when Rs1.53 million was reportedly withdrawn from the customer’s account without authorization. The citizen claimed that his mobile number had been compromised, allowing unauthorized access to his bank account.
The dispute had already been decided against MCB by several authorities before reaching the Federal Constitutional Court. Earlier rulings from the Banking Ombudsman, the President of Pakistan, and the High Court all held the bank responsible for the financial loss suffered by the customer.
Despite repeated decisions against it, MCB continued its legal challenge and approached the country’s top constitutional forum in an attempt to overturn previous rulings.
During the hearing, Justice Amir Farooq made strong observations regarding online banking security and cyber fraud in Pakistan. He stated that many security vulnerabilities may exist within banking systems themselves, raising concerns about internal weaknesses in digital banking operations.
Justice Amir Farooq also shared that he personally received fraudulent phone calls asking him to share a One-Time Password (OTP) to avoid account blockage. He remarked that banks must improve security systems to protect customers from growing cyber threats.
The court questioned how ordinary citizens could recover their money if financial institutions failed to provide secure digital banking environments. The remarks highlighted increasing concerns regarding online fraud and customer protection in Pakistan’s banking sector.
The bank’s legal team argued that the customer had himself conducted transactions through a mobile banking application. However, the affected citizen maintained that unauthorized access was gained after his mobile number was compromised.
The final ruling effectively closed the long-running legal dispute and reinforced earlier findings against MCB regarding responsibility in the fraud case.
The latest case has once again raised concerns about cybersecurity and internal monitoring within financial institutions. Experts say online banking fraud cases have become more common as digital banking usage continues to increase across Pakistan.
The judgment also comes after previous regulatory actions involving the bank. In 2024, the State Bank of Pakistan fined MCB more than Rs76 million in separate cases related to foreign exchange dealings, KYC compliance, and operational weaknesses.
In another case during 2026, the Banking Mohtasib directed MCB to refund Rs3.05 million to a customer after alleged misconduct by a branch official involving unauthorized withdrawals.
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Observers believe the latest court decision may increase pressure on banks to improve cybersecurity systems, strengthen customer protection measures, and enhance oversight of digital banking services.
