FTO Warns of Cybercriminal Control Over FBR IT System

ISLAMABAD: The Federal Tax Ombudsman (FTO) has exposed a shocking security breach in the Federal Board of Revenue (FBR)’s IT system, alleging that cybercriminals have seized full control, compromising the tax infrastructure, according to Business Recorder.

An FTO order revealed dire vulnerabilities, including unauthorized password access, tax data manipulation, and fraudulent return filings. Initially triggered by a complaint under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000, concerning illegal sales tax registration suspension, further grievances uncovered recurring hacks, unauthorized taxpayer profile changes, invoice deletions, and fake sales tax document insertions.

The FTO report warned that the FBR’s IT system is prone to data manipulation, backdoor entries, and untraceable unauthorized transactions, with cybercriminals operating unchecked. This imperils the system’s integrity and survival.

Despite repeated efforts to trace hackers altering complainant IDs and passwords, the breaches persist. The FTO suggested potential insider involvement, particularly from PRAL, the FBR’s IT wing, with direct system access.

The report flagged critical weaknesses: inadequate data security, lax internal controls, and insufficient anti-fraud safeguards, enabling unauthorized profile changes and fake transactions, hinting at possible collusion between taxpayers and FBR/PRAL staff.

The FTO’s revelations underscore grave threats to Pakistan’s tax system, demanding urgent action to fortify vulnerabilities.