Pakistani bankers
see cybercrime as top security threat
A recent survey by
PricewaterhouseCoopers (PwC) Pakistan has revealed that 90% of bankers consider
cybercrime the most significant challenge facing the country’s banking sector.
The survey also identified fraud (70%) and terrorism financing (60%) as major
risks threatening the industry.
The PwC Pakistan Financial Crime
Survey 2024, which gathered insights from Chief Compliance Officers (CCOs) and
business function heads, aimed to assess the banking sector’s preparedness to
combat financial crimes. Over 75 respondents took part, highlighting the
growing risks associated with digital adoption, economic instability,
inflation, and increasing threats of terrorism.
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The survey found that CCOs rated
cybercrime (90%), fraud (70%), terrorism financing (60%), tax evasion (56%),
money laundering (55%), and sanctions violations (50%) as "very high"
risks.
With the rising adoption of digital
technology in Pakistan, the survey emphasized the need for banks to strengthen
their financial crime risk management strategies. However, 60% of respondents
cited challenges such as limitations in technology, data management, human
resources, and compliance costs as obstacles to effectively addressing
financial crimes.
In response to these risks, banks
plan to prioritize investments in several key areas over the next year. These
include data governance and cleansing (95%), technology optimization (90%),
specialized training programs (75%), and the implementation of emerging
technologies (60%).
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Despite these planned investments,
the survey found that banks are still facing challenges in achieving high
performance and stability in their financial crime technologies. PwC emphasized
the crucial role of organizational culture and talent in navigating the
sector’s transformation amid digital innovation, regulatory changes, and
shifting customer expectations.
The report also noted that Pakistani
banks have access to vast amounts of data, which, if leveraged effectively,
could help banks better understand customer behavior, target niche segments,
and design data-driven strategies to attract and retain customers while
reducing financial crime risks.
Source: Profit Pakistan