Massive cyber fraud hits F1Soft, dozens arrested

Nepal Police’s Cyber Bureau has uncovered a major cyber fraud involving the theft of NPR 33.95 million from F1Soft International Pvt. Ltd.’s account at Citizens Bank International. Over 500 bank and wallet accounts were used to funnel the stolen funds. A chargesheet has been filed against 24 individuals for fraud through electronic means, with 15 suspects still at large.

F1Soft, a leading provider of digital financial services and developer of platforms like eSewa and FonePay, filed a complaint on October 6, 2024, revealing that hackers exploited system vulnerabilities to withdraw NPR 35.15 million from their account between October 1-4. The hackers used fake online job offers to lure individuals into opening bank accounts, which were then used for illegal transactions. Many of the accused admitted to being misled, unaware that they were aiding in the theft.

The police’s month-long investigation revealed that hackers operated from abroad, and the stolen funds were funneled through multiple accounts. Authorities are recommending measures like a cooling-off period for new accounts, transaction limits during the initial months, and stricter verification of mobile numbers linked to digital banking.

As cyber fraud continues to rise, stakeholders are urging the public to remain cautious of online payment scams, fake job offers, and fraudulent schemes. With 63% of suspicious transactions in 2024 linked to cyber fraud, Nepal’s banking and e-commerce sectors are increasingly vulnerable to such attacks.