A large number of digital transactions involving ConnectIPS, various wallet accounts, and Fonepay transfers were traced to accounts belonging to illiterate persons who apparently lacked the skills to use such payment systems.
Upon scrutiny, these accounts were found to be operated by fraudsters as “money mule” accounts.
Nepalese casinos are vulnerable to money laundering due to lack of control.
Fraud schemes reported at the Financial Intelligence Unit-Nepal included money-doubling scams, cryptocurrency investments, network marketing, online room rental services, and fraudulent online payments for the Pearson Test of English (PTE) and International English Language Testing System (IELTS) exams, among others.
Fraud by luring victims with promises of gifts or parcels was the most reported type of cyber-enabled fraud.
Fraud using social media impersonation and fraud by tempting victims with promises of free iPhone and other Apple products were jointly ranked as the second most reported typology. Social media impersonation was mainly observed on WhatsApp and Facebook.
Hacking of Facebook accounts was frequently linked to social media impersonation, where fraudsters used stolen photos and names of prominent public figures to create fake accounts. Fraudsters would then engage with the real persons’ close relatives and friends and ask for money by using various tactics, including creating fake emergencies.
Youngsters are at the forefront of internet-based fraud schemes.
According to the report, 70 percent of the individuals suspected of cyber-enabled fraud were aged between 19 and 30 years.
This means the young people are working as “money mules” in Nepal.
According to the report, most common fraud methods include gift or parcel scams, social media impersonation, fake online business platforms, OTP fraud, lottery scams, and unauthorised access to bank or wallet accounts using various fraudulent techniques.
A central bank report said that cyber-enabled fraud is rising in Nepal.
