Weaknesses in Pakistan’s systems provide opportunities for fraudsters, with illegally obtained SIM cards being used to make fraudulent calls and send fake banking messages.
The issue came under discussion at a meeting of the National Assembly Standing Committee on Interior and Narcotics Control on Thursday, where officials said criminal networks remained active despite the blocking of 18.2 million unlawful SIMs during the past two and a half years and penalties imposed on telecom operators.
Officials informed the committee that fraudsters were also obtaining biometric information through illicit means and using rented bank accounts to execute financial scams, exposing continuing vulnerabilities in the country’s telecom and financial systems.
The meeting was chaired by Raja Khurram Shahzad Nawaz and attended by State Minister for Interior Talal Chaudhry, Anjum Aqeel Khan, Abdul Qadir Patel and Khawaja Izharul Hassan.
NCCIA Director Irfanullah Khan told the committee that weaknesses in existing mechanisms were contributing to the growing incidence of cyber and financial crimes. Referring to a recent operation in Multan, he said investigators recovered 195 operational SIM cards and 81 ATM cards being used by fraudsters.
He said criminals were taking advantage of loopholes in the system to continue their illegal activities.
PTA Chairman Major General (retd) Hafeezur Rehman acknowledged that criminals had found ways to circumvent the biometric verification process used for SIM registration. He said stolen fingerprint information was being obtained from places such as airports, driving licence centres and passport offices, with the possibility that data could also be compromised from Nadra.
During joint operations conducted by the PTA and NCCIA, authorities raided 110 locations, blocked around 29,000 illegal SIMs and apprehended 171 suspects. Data related to approximately 600,000 people was recovered during the operations.
State Minister Talal Chaudhry described the existing biometric verification mechanism as outdated and advocated introducing more advanced identification technologies, including facial and iris recognition. He stressed the need for telecom operators to strengthen their security systems in collaboration with the PTA.
The minister further highlighted the growing practice of individuals providing their bank accounts to others for use in laundering money generated through fraudulent activities.
Committee Chairman Raja Khurram Shahzad Nawaz instructed Interior Secretary Ahmad Raza Sarwar to immediately bring together relevant stakeholders, including the State Bank of Pakistan (SBP), PTA, NCCIA and telecom companies, to develop a comprehensive strategy for cutting off the supply of illegal SIMs used in online financial crimes.
The committee was also briefed by representatives of the NCCIA, PTA, cellular operators and the banking industry on fraudulent calls, unauthorised SIM issuance, theft or misuse of biometric information and evolving financial scams.
Members discussed emerging techniques used by criminals, including unauthorised withdrawals and the use of so-called “mule” or rented bank accounts to move illicit funds.
The committee directed relevant authorities to develop workable legislative, regulatory and technological measures to reinforce Pakistan’s cybersecurity system. Officials were also asked to increase public awareness regarding the misuse of foreign SIM cards and strengthen monitoring of social media platforms to stop their unlawful promotion.
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