Rising Cyber-Enabled Financial Fraud in Nepal: Youth and Students Among Key Offenders
Nepal is witnessing a surge in cyber-enabled financial fraud, with youth aged 19–30, particularly students, identified as leading offenders. The Strategic Analysis Report 2024 by the Financial Intelligence Unit (FIU) of Nepal Rastra Bank (NRB) outlines alarming trends in online fraud and suspicious financial activities.
As of May 2024, 63% of suspicious transaction reports received by FIU were linked to cyber fraud, with over 70% of suspects aged 19–30. Fraud schemes often involve fake lotteries, gifts, social media impersonation, and account takeovers. Most scams were carried out through newly opened accounts, with fraudulent activities typically occurring within three months of account creation.
To address these threats, the report recommends robust Know Your Customer (KYC) processes, linking digital services to registered mobile numbers, setting transaction limits for new accounts, and conducting public awareness campaigns. It also advocates for real-time transaction monitoring, accountability for negligent financial institutions, and fraud insurance for digital wallets and cards.
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Medical Entrepreneur Durga Prasai Arrested for Cybercrime
On 19 November, Medical entrepreneur Durga Prasai was arrested by the Central Investigation Bureau (CIB) of Nepal Police on charges of cybercrime after accusing Prime Minister KP Sharma Oli of investing Rs 32.5 billion in a Cambodian telecom company. The Kathmandu District Court has remanded him for five days in custody for investigation under Section 47 of the Electronic Transactions Act, 2008. Prasai claimed to possess verified documents as evidence, which were widely circulated on social media. However, discrepancies in the documents, including a misspelled name and mismatched signatures, cast doubt on their authenticity.
PCN Continues Action Against YouTube Channels
Press Council Nepal (PCN) has acted against nine YouTube channels accused of disseminating fabricated and misleading content, referring three unregistered channels to the Cyber Bureau for investigation. In a statement issued on November 19, the Council urged the removal of unverified and biased content, highlighting the need for credible journalism.
Last week also PCN had taken similar actions against YouTube channels, issuing a public notice urging everyone to avoid spreading misinformation and disinformation. The Council claims that it has been actively monitoring objectionable content on social media as part of its efforts to combat false information and promote public awareness. However, PCN’s recent actions have drawn criticism from stakeholders, who argue that monitoring social media falls outside the Council’s jurisdiction.
NC Leader Shekhar Koirala Calls for Revision of Social Media Bill
Nepali Congress leader Shekhar Koirala emphasized the need to adhere to the constitution while drafting laws. Speaking in Kathmandu on 14 November about the ‘Social Media Bill-2080 BS,’ he criticized the government for bypassing stakeholder consultations, labeling its approach autocratic. Koirala called for the bill to be rewritten after thorough discussions with stakeholders to ensure it aligns with democratic principles.
In line of these concerns, DRN recently organized an interactive program to discuss the proposed Social Networks (Use and Regulation) Bill, engaging parliamentarians, media professionals, legal experts, and advocates on its potential impact on Nepal’s digital rights. As part of its advocacy, DRN also published a briefing note that highlights the concerning and problematic provisions within the bill, urging for amendments to safeguard digital freedoms and digital rights.
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Opportunity
Webinar on Digital Rights and Platform Regulation
Join the Centre for Law and Democracy (CLD) on 27 November 2024 for an insightful webinar on international standards for regulating online speech and digital platforms. This session will feature presentations by CLD on international digital rights standards and platform regulation; and insights from El Veinte, a Colombian civil society organization with expertise in digital rights litigation.
Register at: https://us02web.zoom.us/meeting/register/tZAvc-uhrTIpHNGar-mgbp7d56AoSSC74kSD
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Join the Digital Security Training Program
Register now for the Digital Security Training Program, a joint initiative by Asia Centre and Digital Rights Nepal (DRN) designed to equip 1,000 individuals across 12 Asia-Pacific countries, including Nepal, with essential skills to safeguard their online presence and address cyber threats. This comprehensive training program, offered free of charge, will enhance participants’ understanding of misinformation, hate speech, and cybersecurity while providing valuable networking opportunities with like-minded individuals across the region.
The deadline to register is 25 November 2024.
Register at: Digital Security Training Program |
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Digital Rights Weekly is a week-based update on Digital Rights and ICT issues, that happened throughout the week, compiled and analyzed from the digital rights perspective by Digital Rights Nepal (DRN). DRN is a not-for-profit initiative dedicated to the protection and promotion of digital rights, including the right to online freedom of expression and association, online privacy, access to information, and related issues such as internet governance, cyber laws/policies, and cyber securities in Nepal.
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