Banking Fraud on the Rise

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Banking Fraud on the Rise

November 29: Cases of banking fraud have been increasing in Nepal every year. A total of 8,011 cases of banking fraud have been reported in the country since the last five years.

Banking fraud includes check bounce, deceit, conspiracy and misuse of online transaction.

According to the Police Headquarters, altogether 46 cases of banking fraud were reported in fiscal year 2015/16 across the country. The number of such cases has been rising every year since then.

In FY 2016/17, a total of 93 cases related to banking fraud were reported while the number rose to 776 in FY 2017/18. In FY 2018/19, the number of banking fraud skyrocketed to 3,167 while FY 2019/20 witnessed a total of 3,309 cases of banking fraud.  Six hundred and twenty eight cases of banking fraud have been reported in the first four months of the current fiscal year.

The Banking Offence and Punishment Act (first amendment) 2073 prohibits unauthorized loan disbursement, unauthorized opening of bank account or payment of money, abuse of electronic means of transaction or unauthorized used of electronic payment, misuse of loan, misuse of banking resources and property.

Of late, there has been a rise in instances of cheque bounce.

SSP Kuber Kadayat, spokesperson of Nepal Police, says that the rise in number of banking fraud cases is due to an increase in incidents of cheque bounce.

“Banking fraud also takes place through internet and online medium. The number of cases related to banking and finance sector has increased,” said SSP Kadayat, adding, “The major reasons for this is the ambition to earn quick money, big aspirations, and rapid urbanization.”

It has been found that many instances of banking fraud take place in collusion with the staffers of banks. SSP Kadayat added that most of the offenders have already been booked.

Recent studies have revealed that there has been a rise in cases of banking offence with the use of technology and most of the offenders are not involved in the crime directly, said SSP Kadayat.

The Central Investigation Bureau (CIB) has been investigation complicated cases of banking fraud. Last month, the CIB arrested around half a dozen people on charges of banking fraud.

 

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