Digital Financial Fraud Surges in Nepal, Leaving Victims Waiting Years for Justice

Dikshya Awasthi

As digital payment is becoming part of everyday life in Nepal, so do cases of digital financial fraud.

Thousands of people are reporting money disappearing from their accounts through scams, hacking, and unauthorized transactions.

During my visit to the Cyber Bureau Investigation (CIB) Office in Bhotahiti, I spoke with two victims of digital fraud who reported losing money from their accounts through suspected hacking.

The director of the Amrawati Saving and Credit Co-operative Society Ltd., one of the victims, says 3.4 million Rupees from the co-operative’s current account at the Rastriya Banijya Bank was taken through “what they call hacking or a scam.” He has been frequently visiting the Cyber Bureau office for almost 15 days now.

Similarly, another person from Humla district got into digital fraud two years ago. A sum of 2 million Rupees was transferred out of his personal account through a scanning scam. It happened on the 17th of Chaitra, 2081 BS. He immediately came and filed a complaint with the Cyber Bureau and informed Nepal Rastra Bank. It has already been 2 years, he is still visiting CIB and banks for his money return.

These are just two among thousands of victims of digital financial fraud in Nepal.

According to the Cyber Investigation Bureau, 4,154 fraud complaints were registered in fiscal year 2023/24. That number surged by more than 90% to 7,740 in 2024/25. In just the first ten months of the current fiscal year 2025/26, another 5,498 complaints have already been filed.

As digital banking, mobile wallets, and online transactions are becoming increasingly common after Covid-19 pandemic, authorities say cybercriminals are exploiting new technologies at an alarming pace.

Victims are complaining over complicated hearing measures and prolonged processes to get justice. Even after multiple visits to Police and Banks for years, they still haven’t received their money back.

According to the executive director of Nepal Rastra bank Guru Prasad Paudel, tackling digital financial fraud requires coordinated action among multiple institutions.

He highlighted three measures to address the proliferating digital financial crimes:

First, enhance public awareness through digital financial literacy and safe online practices.

Second, strengthen institutional security by adopting international standards, implementing ISO-certified systems, and conducting regular security audits.

Third, build a coordinated digital ecosystem where the law enforcement bodies like CIB, courts, prosecutors, banks, and service providers work together to prevent and respond to cybercrime effectively.

Nepal already has legal frameworks in place. The Electronic Transactions Act, 2008 criminalizes hacking, identity theft, and online fraud.

The Banking Offence and Punishment Act addresses unauthorized electronic transactions and banking crimes, while the Muluki Criminal Code contains broader provisions against fraud and deception.

But as digital transactions continue to expand across the country, the challenge lies in the lack of digital literacy to prevent fraud and also the absence of foolproof mechanisms to respond quickly to complaints, and maintain public trust in Nepal’s digital financial system.