Cyber Bureau SP Dilip Kumar Giri Discusses Rising Online Fraud and Prevention Methods

Kathmandu. The most common crime is fraud. Among frauds, the graph of incidents of fraud through electronic means is increasing. Those who ask for money transfer first when trying to buy gadgets like mobile phones online disappear as soon as the money is transferred.

Facebook, WhatsApp, Telegram, Insta, and TikTok, which we use, have become mediums of fraud. Those apps are not wrong in themselves, but they are being misused.

Edited excerpt of a conversation between Ratopati correspondent Rajesh Bhandari and Cyber Bureau Spokesperson and SP Dilip Kumar Giri about electronic fraud and its causes:

• Currently, online fraud seems to be increasing. What types of fraud complaints are being received by the Cyber Bureau these days?

With the increasing use of technology, the number of people being defrauded through it has also increased. The Cyber Bureau is currently receiving the most complaints about online shopping fraud.

Especially when people shop online, they first make half payments. Then, when they are told from the other side, 'Your money is on hold, follow our instructions,' people share OTP codes and screen shares. This allows unauthorized access to the victim's account and empties it.

Another common complaint is receiving calls claiming to be from banks or wallets, saying 'Your KYC needs to be updated,' and asking for OTP. Some people believe them and share the OTP, leading to significant fraud.

Another method is asking for QR codes to transfer money. People share QR codes and OTPs out of trust. Another is romance scams. This involves people making video calls via WhatsApp, sending nude photos/videos, and then threatening to share the video with family and friends if money is not paid.

Another fraudulent style is offering work-from-home opportunities. This was prevalent on Telegram but has decreased slightly. They lure people with the prospect of earning money from home and ask for a small initial investment. They provide a slightly higher refund on this. After enticing people, they might show a return of 1 lakh to 1.5 lakh on a 50,000 investment. Then, the gang offers opportunities for 5 lakh and 10 lakh. Subsequently, victims are forced to keep investing money to retrieve their funds.

Another method involves hacking social media accounts like Facebook, Mail, and WhatsApp to commit fraud. A recent trend is hacking WhatsApp, asking for small amounts of money from close contacts, and then blocking them. People are defrauded because they transfer money without verifying, thinking it's a small amount.

• News of many people being victimized and the methods of fraud are frequently exposed, yet why do people repeatedly fall victim to similar fraudulent schemes?

I have been working at this bureau for the past 5 months. During investigations, I have observed that people have a lot of greed. People fall victim to such fraudulent schemes due to the greed for easy money without effort and a lack of awareness.

Banks, financial institutions, the Nepal Police Headquarters, the Cyber Bureau, and various non-governmental organizations have been broadcasting and publishing awareness programs through the media. However, people do not seem to pay attention to such awareness efforts. Therefore, fraud has increased due to a lack of awareness.

On the other hand, criminals adopt new methods. Previously, they used to ask for OTP codes, but now hackers do not mention OTP codes. Nowadays, hackers ask for Zoom codes, meeting codes, or registration codes to be shared. Victims then share them, thinking they are not OTPs.

Another factor is that people in our society are excessively trusting. Due to excessive trust, when asked for money after hacking WhatsApp, victims easily transfer the money.

Furthermore, people tend to believe unknown individuals who call or message from foreign numbers claiming to have sent a diamond necklace worth 2.5 million and 1.5 million in cash. Another major problem is the failure to report incidents. People refrain from reporting due to concerns about their social reputation or how they might be perceived by their families or society, which also contributes to people being defrauded.

• It appears that the police are focusing more on investigating fraud after it has occurred rather than preventing it. What steps should the police take to prevent such incidents? What are you doing?

First and foremost, nothing can be done without the victims being aware. Awareness programs need to be conducted extensively. We are doing so, but it is not enough.

Secondly, coordination is also necessary. When a person reports being defrauded, not only the Cyber Bureau but also banks, financial institutions, internet service providers, and foreign agencies need to coordinate in the investigation. The delay in addressing these issues by the coordinating bodies has resulted in the non-recovery of defrauded funds. Therefore, coordination is essential.

Thirdly, the complaint and investigation process needs to be expedited. We send letters to banks and financial institutions after receiving complaints. Sometimes, due to overloaded emails, the letters are not received, or responses are delayed, causing victims to suffer. A system needs to be developed for this. We have proposed the formation of an integrated team where banks, financial institutions, and the Cyber Bureau work together. This proposal has been sent to the Police Headquarters, and a decision is expected soon.

• Are our current investigation methods and technology sufficient to combat the increasing number of electronic frauds? If not, what improvements are needed?

It cannot be said to be sufficient; we are trying. There are many challenges. For instance, we may need a high-tech lab. With a high-tech laboratory, we can extract a lot of information. Along with a high-tech lab, we also need skilled manpower to operate it. Similarly, coordination needs to be significantly increased. Even with coordination, if the responding agencies do not respond promptly, we cannot deliver quick results.

Victims' only hope is with the police. They believe the police will recover their money. The defrauded money is held in bank accounts, but the bank will not return it until the perpetrator is found. Sometimes, accounts are proxies, and the account holder cannot be found. If a victim's 1 million rupees has gone into someone's account, we need to find the account holder to retrieve the money; otherwise, we have to wait. Therefore, we have proposed developing a system to return the money if a link is found, even if the individual is not apprehended. Additionally, our personnel need knowledge of AI.

• Which applications are most frequently used for fraud?

Facebook and Messenger are widely used for fraud. Fraud is also occurring through WhatsApp, Telegram, Insta, and TikTok. The apps themselves are not wrong; it is their misuse that is happening.

Currently, small, fragmented frauds are happening through WhatsApp. Many people come to file complaints about their WhatsApp being hacked. The number of people being defrauded through Telegram has decreased. Fraudulent schemes offering work-from-home opportunities were widespread, involving tens of millions of rupees. This has now reduced.

Currently, many people are being defrauded through WhatsApp by impersonating bank or wallet representatives and claiming KYC updates are needed. Connect IPS has also become another medium for fraud.

• There is a recent trend of many people being defrauded when trying to buy gadgets like mobile phones online. How can this be controlled?

Those who shop online should first verify the authenticity of the seller. The best advice is not to engage in pre-payment for online shopping. Opt for 'Cash on Delivery' shopping, where payment is made upon receiving the goods. Pre-payment significantly increases the risk of online fraud. Most people defrauded in online shopping have fallen victim due to pre-payment.

Another point is to check the seller's authenticity in detail. There have been incidents involving fraudulent websites. Do not click on suspicious websites. Advertisements are currently appearing asking to download applications to watch the FIFA World Cup for free. 115 victims who tried to watch the World Cup for free have filed complaints with the bureau, reporting over 22.9 million rupees defrauded. Links with extensions like .exe, .sh, or .bat should not be opened.

If something is offered at an extremely low price, do not believe it. An iPhone 17 costs over 200,000 rupees, but do not believe an offer of 35,000 rupees. Such an iPhone will never be available at that price. If you believe offers that seem too good to be true, you will be defrauded.

Keep screenshots of your payment details, as they will serve as legal documents if needed later.

• What factors do you see contributing to the daily increase in electronic fraud?

Lack of awareness is the main reason. Another factor is the new technologies used by hackers and fraudsters. Greed is also a contributing factor. Easy money does not come without effort. In the past, people used to buy lottery tickets by standing in line; if those tickets don't win, how can a ticket you never bought win? People have been defrauded by believing someone on WhatsApp who claimed to send them a diamond necklace worth 2.5 million and 1.5 million in cash. We have received a complaint of losing 1.3 million rupees in such a case.

Nowadays, neighbors won't lend 25,000 rupees. In a time when friends might not believe you for 25,000 rupees, you should not believe a stranger who claims to send a diamond necklace worth 2.5 million. The Nepal Police Headquarters, Cyber Bureau website, Facebook, and various banks and financial institutions have broadcast videos on how to avoid fraud. I urge everyone to watch these videos and share them with others. Doing so can help prevent fraud.