Mukhtar Ahmed Butt : The writer is a freelance journalist and defence Analyst.
Online banking has made financial transactions remarkably easy, enabling you to transfer money, settle bills, and manage your accounts with just a few clicks. It’s not surprising that millions have adopted this digital change and have benefited from numerous advantages of E-banking. But for individuals who depend on these services stakes are even more significant, as problems such as hidden charges and cybersecurity risks can create extra anxiety. No doubt Electronic banking has revolutionized financial management with its convenience and accessibility, but it can come with unique challenges. One of the major disadvantages of onlinebanking is cyber threats. Hackers constantly develop ways to steal sensitive data through phishing scams, or direct hacking attempts. When weak passwords, multi-factor authentication, or access via public Wi-Fi networks are used, personal data is exposed to theft.
On 21 December my WhatsApp number was hacked and when approached to WhatsApp custodians I was told to wait for 12 hours. That was ridiculous response. In the meantime, the hacker contacted all my WhatsApp contacts and asked for 5lac rupees to be returned next day. I started getting calls but at the same time I kept sending messages to all my contacts about hacking of my number. One of my friend without verifying from me transferred Rs 2 lac in hackers designated account number and the amount was immediately withdrawn. I made a written complaint to Cyber security wing of FIA, President Mezan Bank and complaint to Faisal Bank from where the amount was transferred. Later on sent my complaint to Wafaqi Mohtasab Banking. My friend who sent Rs 2 lack sent complaints to his banker, the bank in which hacker was operating his accounts but received routine reply. He also sent complaint to Governor State Bank of Pakistan but received no response. We accepted our mistake but the bank took no action against the account holder whose particulars are held by the bankers thus encouraging fraud by clients with no action by the banks.
Online banking relies heavily on technology; when that fails, your transactions do, too, which can become one of the biggest drawbacks of e-banking. Server outages, system maintenance issues, software bugs, or even an inadequate internet connection could obstruct accessing your account at crucial moments, especially during emergencies when sending funds urgently or paying an outstanding bill is essential. Technology dependence and the disadvantages of banking can create anxiety. Furthermore, this reliance underscores how one technical failure could wreak havoc with your financial management strategy. Traditional banking provides face-to-face support, which online banking lacks.
Online banking may appear cost-effective at first glance, but hidden fees may eat away at any savings it achieves. Transaction charges, currency conversion fees, and service fees can add to the disadvantage of electronic banking, leaving you paying more than expected for routine transactions.
By allowing hackers to open accounts under the cover of digital banking it tantamount to encouraging fraudulent transactions. Oncehacker’s activity is reported to the banker with proper documents, the Branch Manager must lodge an FIR against account holder and ensure that money transferred through hacking is recovered and deposited in his account. Why has such system of banking where banks feel helpless and refuse to take action except sending computer generated letters?
