LHC Declares Bank Customer Data as Legal Property

The Lahore High Court (LHC) has ruled that confidential banking information qualifies as “property” under the law, meaning bank employees who misuse their official access to customer data may also face criminal breach of trust charges.

The ruling came in a cyber banking fraud case involving the alleged misuse of confidential customer information, fake SIM cards and fraudulent transfers exceeding Rs104 million from bank accounts.

Justice Tariq Saleem Sheikh issued the 19-page written judgment while deciding post-arrest bail petitions filed by the accused.

The court rejected the bail request of a bank employee but granted post-arrest bail to SIM franchise owner Muhammad Usman against surety bonds of Rs1 million.

The judgment stated that in modern banking, access to confidential customer data is closely linked to access to their financial interests, making its unauthorised use a serious offence.

The court also held that the role of every accused in cyber fraud cases must be assessed separately according to the available evidence. It found sufficient prima facie material indicating that bank employee Atif had accessed confidential customer information and allegedly contributed to the fraud, justifying the rejection of his bail plea.

The case was registered by the National Cyber Crime Investigation Agency (NCCIA) following a complaint from the Pakistan Telecommunication Authority (PTA). Investigators allege that leaked banking data was used to obtain fake SIM cards in customers’ names, which were then used to transfer Rs104 million from the accounts of six individuals.

The court further observed that the accused could face prosecution under the Prevention of Electronic Crimes Act (PECA) as well as relevant provisions of the Pakistan Penal Code.