Faulty FBR cyber security caused Rs14.66 billion tax fraud

The Federal Tax Ombudsman (FTO) has exposed a significant cybersecurity failure in the Federal Board of Revenue (FBR), leading to a massive tax fraud of Rs14.66 billion, reported 24NewsHD TV Channel on Tuesday.

According to the channel report, the FTO’s investigation, initiated after a taxpayer's complaint, revealed that cybercriminals took advantage of FBR's weak cybersecurity measures to carry out fraudulent transactions.

The cyberattack compromised taxpayer data, with criminals using this vulnerability to make fake transactions amounting to Rs81.43 billion. This led to a tax loss of Rs14.66 billion for the national treasury. Despite the complainant showing zero tax liability, the FBR blacklisted them, raising further concerns about the board’s handling of the situation.

The FTO strongly criticized FBR for its failure to protect sensitive data and directed the immediate identification of the criminals involved. It also instructed FBR to take strict action against those responsible for the cybersecurity lapse and ensure robust measures to prevent future breaches.

Reporter: Ashraf Khan