There are both advances and risks in Pakistan's payment security landscape, and here are key points analysed to help you assess and take precautions:

I. Status of the payments infrastructure

1. Government drives digitisation

   • State Bank of Pakistan (SBP) launched 'Raast' instant payment system (similar to Alipay/WeChat Pay in China) to reduce cash dependency and make transactions traceable.
   • Requires all payment platforms to be licensed by SBP or PSO (Securities and Exchange Commission of Pakistan).

2. Mainstream Payment Methods

   • ATM card: Visa/Mastercard penetration has increased, but some remote areas still rely on magnetic stripe cards (chip cards are more secure).
   • mobile wallet: JazzCash, EasyPaisa, etc. require a mobile phone number to register and support code-sweeping payments and small transfers.
   • bank transfer: IBAN numbering system standardised, but be wary of bogus account scams.

II. Key risks and challenges

1. High incidence of Internet fraud

   • Spoofing bank SMS/links to steal OTP verification codes (accounting for more than 60% of fraud cases).
   • The frequency of "pay before delivery" scams in social e-commerce transactions.

2. data breach
   2022 User information of a major e-commerce platform was leaked, leading to massive theft. It is recommended to change passwords regularly and enable two-factor authentication.

3. Pitfalls of cash payments
   Small traders still favour cash transactions and may be at risk of counterfeit notes or robbery.

III. Recommendations for safe use

1. Choose a compliant channel

   • Confirm that the service provider has an SBP authorisation licence (list available on the official website).

2. technical protection

Python example: a simple way to detect phishing links

import re
def is_phishing(url).
suspicious_keywords = ['login', 'verify', 'secure']
return any(keyword in url.lower() for keyword in suspicious_keywords)

Should be used in conjunction with a formal domain name whitelisting check.

3. *Habits of operation*  

- ✖️ Avoid operating internet banking under public WiFi;

- ✔️ to set a single day transfer limit;

- ✔️ Regularly check account SMs notifications for anomalies.



4.* Dispute resolution*

Keep screenshots of all transactions and file a complaint with the [Consumer Protection Tribunal](https://www.mca.gov.pk) in case of disputes.



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IV. Comparing neighbouring markets



|country |PCI-DSS compliance |mobile payment penetration|

|---|---|---|

|Pakistan |42% (2023)|35%|

|India |68% |58%|

China (Reference) |>90% |>80%



Note: PCI-DSS is the international standard for bank card security.



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In conclusion, the risk of making electronic payments in Brazil can be controlled through official channels and by using basic protection measures. For large transactions, it is advisable to give preference to bank counters. Convenience and security can be balanced with vigilance

V. In-depth risk analysis and response strategies

1. Card skimming and cloning risks

• status quo: The use of magnetic stripe cards (non-chip cards) still exists in Pakistan, which can be easily duplicated by side-recording devices. Some ATMs lack real-time monitoring systems.
• case (law):: 2023 Massive card cloning theft involving more than 200 debit cards at a bank in Karachi.
• Response::
  • ✅ Prioritise the use of chip cards (EMV standard) to reduce the likelihood of duplication.
  • ✅ Check for abnormalities in the card insertion port when withdrawing money from ATMs (whether there is an additional card reading device).
  • ✅ Enable SMS alerts for transactions and freeze accounts immediately when anomalies are detected.

2. Mobile payment fraud revealed

Common mobile payment scams in Pakistan include:

⚠️ take note of: Some fraudsters will fake the interface of the bank app, make sure to download it from the official app shop.

3. Risk control recommendations for P2P transfers

'Person-to-person' transfers are commonly used by Pakistanis (e.g., friend-to-friend loans, social e-commerce payments), but lack a platform guarantee mechanism:

• ✖️ Avoid paying full price in advance directly to strangers (especially Facebook/WhatsApp shopping).
• ✔️ uses the Raast system's Request-to-Pay feature, which makes it safer for the bill to be initiated by the payee.
• ✔️ small split payments to test the credibility of the other party.

VI. Legal Protection and Complaint Process

In case of payment fraud:
1️⃣ Step 1: Freezing of accounts
Contact the bank/wallet platform customer service immediately (keep a record of the call).

2️⃣ Step 2: FIR Reporting
Filing a First Information Report (FIR) with the local police department is required:
- Screenshot of transaction flow
- Other party's account information (if any)
- SMS/email chain of evidence

3️⃣ SBP Complaints Channel.
pass (a bill or inspection etc)National Bank grievance portalSubmission of appeals, which are normally processed within 15 working days.

📌 crux: Fraud cases exceeding Rs 50,000 can be pursued under the Electronic Crimes Act, 2017.

VII. Future trends and technological upgrading

1. 🚀 Biometric Verification Popularity.
   Some banks have piloted fingerprint/face recognition login apps (e.g. UBL Digital), which are expected to be rolled out nationwide by 2025.
2. 🔐 Blockchain cross-border remittance trials.
   SBP is testing a remittance system based on Ripple technology, which reduces fees and intermediary risk.
3. AI anti-fraud monitoring.
   Private banks such as HBL have introduced machine learning models to analyse unusual transaction patterns (e.g. sudden large transfers).

VIII. User self-checklist
A quick check before each payment.

[ ] Is the recipient a common contact? 

[ ] Is the network environment secure (non-public WiFi)?

[ ] Did you receive a double authentication request? 

[ ] Is the amount of the transaction within the preset limit?

If any of the above is "No", it is recommended that the operation be suspended and reviewed!

In summary, the security of electronic payments in Pakistan is improving, but caution is still needed. Risks can be minimised by choosing the right channels and being proactive. For large sums of money, it is recommended to use a commercial bank's counter service or an authorised manager. (End)