Rising Online Fraud During Festivals: Nepal Rastra Bank Issues Cautionary Advisory
Nepal Rastra Bank has issued an advisory warning the public, banks, and digital service providers to stay alert against the heightened risk of online fraud during festivals like Dashain, Tihar, Nepal Sambat, and Chhath. The advisory outlines common fraud types such as fake offers, phishing, and fake online shopping pages, along with preventive measures.
Kathmandu. Nepal Rastra Bank today issued an advisory urging caution against online fraud, which tends to rise during the festival season.
The advisory was issued after the Financial Information Unit of the central bank found an increase in online fraud incidents while analyzing banking transactions. The risk of various digital and financial frauds targeting the general public and the financial system is seen as high, as criminals take advantage of the widespread use of online account creation, digital banking, e-commerce, and digital payments during festivals such as Dashain, Tihar, Nepal Sambat, and Chhath, according to the central bank.
The main objective of the advisory is to help consumers, banks, financial institutions, and online service providers identify potential risks and provide guidance to avoid such frauds, the central bank said.
Major Types of Online Fraud During Festivals
- Fake Festival Offers and Lotteries: Sending fake links via social media such as Facebook, WhatsApp, Viber, and Messenger under the guise of 'Dashain Dhamaka', 'Tihar-Chhath Bumper Gift', or 'You have won an attractive prize', and demanding advance money in the name of service charges or taxes.
- Phishing and Banking Fraud: Creating fake websites/pages of banks or digital wallets, threatening customers that their accounts will be blocked if KYC is not updated, and stealing passwords, OTPs, and personal details to defraud money from bank and financial institution accounts.
- Fake Online Shopping Pages: Posting pictures of branded goods on social media, advertising heavy discounts, and demanding advance payment. After receiving the advance payment, they neither send the goods nor block the customer, committing fraud.
- Misuse of Fake Identity and Documents: Creating fake accounts (such as fake Facebook accounts) by posting someone else's citizenship, photo, or forged documents on social media to carry out criminal activities.
Measures for General Public and Consumers to Stay Safe
- Keep OTP and Passwords Confidential: Do not share the OTP received on your mobile, your bank account password, or your wallet PIN with anyone.
- Do Not Click on Fake Links: Do not open suspicious links claiming 'Free Recharge', 'You've won a lottery', or 'Fake Gifts' that appear on social media.
- Be Cautious When Making Advance Payments: When buying goods online, use only official and reliable websites. When buying from new or unfamiliar pages on social media, choose the 'Cash on Delivery' option whenever possible.
- Check the Authenticity of the URL: Before making digital payments, ensure that the website address of the concerned site is correct.
Suggestions for Banks, Financial Institutions, and Digital Service Providers
- Strong Customer Identification: Verify the identity details submitted when opening accounts through digital means.
- Monitoring of Suspicious Addresses and Details: If multiple accounts are opened in different names using the same address or mobile number, keep a 'red flag' mechanism operational to continuously monitor and surveillance transactions in such accounts during long public holidays.
- Use of Technology: Keep monitoring systems robust to detect large volumes of suspicious transactions, unusual cash transfers, or the tendency to send money to many accounts in a short time.
- Employee and Customer Awareness: Train front-line staff to identify potential fraud patterns before the festivals begin, and alert customers through social media and SMS.
Where to Contact in Case of Fraud or Suspicious Activity?
If you have been a victim of any type of online fraud or suspect that your identity has been misused, immediately inform the customer service center of the concerned bank, financial institution, or digital wallet provider (to immediately block your account or wallet), the Nepal Police Cyber Bureau, or the nearest District Police Range or Police Office without delay.