Half of Kathmandu’s Criminal Cases Linked to Banking Offenses

Banking offense cases along with online scams have emerged as one of the most urgent law enforcement challenges in Kathmandu, with cases soaring to record levels over the past year. According to the police, banking offenses accounted for more than half of all criminal cases reported in Kathmandu last fiscal year.

Figures released by the District Police Range, Kathmandu, on Wednesday show that of the 12,915 criminal cases registered in the last fiscal year (FY 2024/25), 6,553 were related to banking crimes, including cheque bounce cases, fraudulent financial transactions, and other violations under the Banking Offenses and Punishment Act.

SSP Bishwa Adhikari, Chief of the District Police Range, Kathmandu described the banking offense caseload as “overwhelming,” with an average of 35 cases filed daily. Cooperative fraud, unfair transactions, electronic crime, and crypto-currency-related offenses have also been on the rise.

According to police reports, banking offenses are on the rise nationwide, with the situation particularly alarming in Kathmandu. Officials note that although such crimes began appearing around eight to ten years ago, the numbers started to climb sharply from fiscal year 2022/23 and have now reached their peak.

Cybercrime Compounding the Problem
The latest data was released just a day after police issued a warning about the NEPSE AI scam — a sophisticated fraud scheme promoted through Facebook, Instagram, and TikTok ads. Marketed as a stock market analysis tool promising high returns, the app allows criminals to gain remote access to victims’ devices, enabling them to drain bank accounts within minutes and erase all device data to destroy evidence.

In one incident, a victim lost Rs 2.861 million shortly after installing the app. Police say the case demonstrates a more advanced form of cyber-enabled financial crime, blending traditional banking fraud with digital exploitation.

The Cyber Bureau has urged the public to avoid unverified apps and links, use two-factor authentication, change passwords regularly, and report suspicious activity to banks and law enforcement agencies without delay.

Legal Reforms and Ongoing Challenges
In an attempt to address the surge in cases, the government amended the Banking Offenses and Punishment Act in February 2025, introducing harsher penalties for offenders in a bid to deter cheque fraud and restore public trust in the financial system.

Law enforcement officials warn, however, that the growing scale and sophistication of banking crimes — often involving numerous low-value but deliberate fraudulent transactions — are stretching resources to their limits. SSP Adhikari emphasized the need for a dedicated police unit equipped with advanced technology to tackle financial crimes, particularly as cyber-enabled scams become more prevalent.