Pakistan is among the top developing countries losing a large portion of its economy to financial scams, costing nearly 2.5% of its GDP, according to the Global State of Scams Report 2025 by the Global Anti-Scam Alliance and Feedzai.

Based on Pakistan’s current GDP, the 2.5% loss equals about $9.3 billion, 33% more than the country’s $7 billion International Monetary Fund (IMF) loan, highlighting the staggering scale of damage caused by fraud and digital scams.

The report, which surveyed 46,000 adults across 42 markets, revealed that seven in ten adults globally encountered scams in the past year, with 13% facing attempts daily. Pakistan ranked sixth among countries with the lowest average loss per victim, $139 per person, but the cumulative effect translates into billions in national losses. Globally, $442 billion was lost to scams in the last year alone. The most common were shopping scams (54%), investment scams (48%), and unexpected money scams (48%). Wire transfers (29%) and credit card payments (18%) were the main channels used by scammers.

“We need to differentiate between financial frauds and scams,” said Rehan Masood, Senior Joint Director, Cyber Risk Management at the State Bank of Pakistan (SBP). Speaking at a JazzCash–SBP awareness session for journalists, Masood said the central bank has strengthened its cybersecurity framework, making it nearly impossible to access accounts from unrecognised devices.

“No one can operate a bank account from an unknown device anymore. Even genuine customers must complete two-step verification and biometric checks,” he said. These measures, he added, have reduced misuse by 90% and could soon bring it near zero.

However, Masood noted most scams occur because customers share sensitive data such as PIN or verification codes. “This information is then used for unauthorised transactions or to trick victims into transferring money themselves,” he explained.

Digital frauds are rising as e-commerce and online payments grow. According to the report, Pakistan has become an easy target for scammers who exploit SMS, WhatsApp, and social media to lure users into fake investment schemes promising high returns. Victims often receive small profits first to gain trust before suffering major losses.

Online shopping scams are also spreading. Fraudsters pose as courier agents claiming a parcel needs verification and send fake links to steal card information. Others impersonate bank officials or police officers, urging victims to share PINs, OTPs, or passwords. Some send SMS messages warning of account suspension to extract details. Others pretend to be friends or relatives in emergencies.

Experts warn that vigilance is the only defence. Customers should never share banking details, PINs, or OTPs, and must verify all links before clicking. Banks never request such details over calls or messages.

Khayyam Siddiqi, Head of Corporate Communication at JazzCash, said protecting users is vital as Pakistan moves toward a cashless society. “Scam tactics evolve constantly, from phishing calls to fake wallet apps, so awareness is key. That’s why we’ve launched a nationwide campaign with SBP to educate users about scam techniques and safe practices,” he said.

The campaign is a joint effort of JazzCash, Mobilink Bank, and the Karachi School of Business & Leadership (KSBL), backed by the SBP, SECP, PTA, Karandaaz, GSMA, and the Pakistan Bankers Association. It marks a major step toward collective consumer protection and digital financial literacy in Pakistan.