The growing threat of cybercrime in Nepal: How prepared are we?

Loss of digital data - National Cybersecurity Center - cybercrime cases

As the world becomes rapidly connected, developing countries like Nepal are also emerging as new potential targets for cybercrime. The rapid digitalization of services—banking, education, and more—now offers great environments for development.

But at the same time, it has also opened the country up to a plethora of cyber threats that India is ill-equipped to capture. From the rise of cybercrime in Nepal to why it is difficult for our country to deal with such a challenge against future enemies and what can be done about cybersecurity awareness.

The Digital Revolution in Nepal

The digital revolution has made tremendous strides in Nepal over the past decade. With the proliferation of smartphones, internet and digital services, Nepali citizens can now more easily connect while doing things. The state has also proposed e-governance initiatives that involve digitalization of public services, aimed at improving efficiency and transparency.

However, the digital revolution has also brought its own challenges. This movement of more people and businesses online has brought a whole new level of threat landscape in Nepal. Moreover, there has been an increased reliance on digital platforms that has made individuals, businesses and government institutions highly vulnerable to cyber attacks.

The Rise of Cybercrime in Nepal

Cybercrime is on the rise in Nepal, as it is globally. According to the data collected by the Cyber Bureau of Nepal Police, the number of cybercrime cases has increased tremendously these days. These range from online fraud to identity theft, hacking attempts and ransomware.

The general public has little to no cybersecurity education, and this is the main reason why cybercrime has increased so rapidly. For example, the average person does not even know what basic cybersecurity entails, and hackers are quick to capitalize on it. Furthermore, the SMBs (small and medium enterprises) that are the backbone of this country today also do not have enough resources or skilled personnel to build robust cybersecurity systems for likely threats.

We also see an alarming trend in the number of cyber attacks on critical infrastructure. This is why Nepali banks were victims of cyber attacks in 2022 and subsequently customer data was compromised, which resulted in closure of numerous accounts with significant financial losses. This clearly shows the weaknesses of the financial sector in Nepal and also opens up vulnerabilities for even more devastating attacks.

Challenges in Combating Cybercrime

Nepal is facing many challenges in controlling the growing threat of cybercrime. These challenges are not specific to Nepal but are common to various developing countries that generally face resource constraints, knowledge gaps and infrastructure limitations.

A major challenge is the lack of awareness of cybersecurity from the public perspective. Many residents are still unaware of online risks that can come into their lives.

This ignorance extends to every sector, including businesses and governments, where not much attention is paid to issues related to internet security. Also, there are no formal institutions for learning and training people in computer security, leaving many at risk of its dangers.

Nepal is at the beginning of its journey to establish a sound cybersecurity architecture. There have been attempts to establish some form of cyber defense, but as yet, a proper framework required for retaliation against hackers is lacking.

This includes a lack of responding agents in the event of an attack or the lack of advanced detection systems that can detect potential danger affecting organizations or even individuals, as well as the lack of secure storage for important files. In addition, laws regarding cybercrime are still emerging, with old statutes unable to effectively deal with this new wave.

Many developing countries, including Nepal, are facing a shortage of skilled cybersecurity personnel. Due to this high demand for cybersecurity experts, which can never be met by supply alone, many companies lack the required capacity to protect their computer resources.

A major setback to improving the national cybersecurity status quo is the skills shortage, which makes it difficult to respond adequately to cyber events.

Although this is recognized by the government, it is not supported due to limited resources and competing priorities, while the manager is given the task of overseeing cybercrime cases, even when they are usually underpaid and overworked. Furthermore, there is a lack of coordination between different government agencies, frustrating attempts to create a unified program for fighting cybercriminals.

Virtual theft has become a global threat with an impact that is felt across all borders, including Nepal. Perpetrators are difficult to catch because they often come from abroad; this makes it difficult for Nepalese law enforcement to catch such offenders and punish them accordingly. Without transnational cooperation or mutual assistance treaties, hackers will thrive on these loopholes and territories.

The economic impact of cybercrime

Cybercrime has a great effect on the economy of Nepal and is on the rise. Direct monetary losses such as theft of funds or ransom payments are some of the direct consequences of cyber attacks. There is also an indirect loss related to loss of customers and reduction in business opportunities due to reputational damage to the company.

This can be particularly devastating for developing countries like Nepal, where economic growth is crucial. Cybercriminals primarily target small and medium-sized enterprises (SMEs), which may not have the financial strength to recover from a major attack. Furthermore, the costs associated with cybersecurity breaches, such as legal fees, regulatory fines, and remediation, can be prohibitive for many organizations.

Improving cybersecurity preparedness

As Nepal faces a rise in cybercrime, the country needs to take measures to enhance its cyber threat preparedness. Such measures should involve the participation of various stakeholders, including the central government, private sector representatives and members of civil society, while international partners should also play their part.

To effectively combat cybercrime, it is essential to raise awareness about cybersecurity risks and ways to prevent them. Therefore, the government should work hand in hand with private organizations and non-governmental agencies to conduct campaigns that educate people about safe online activities.

In addition, schools and universities across the country should teach about computer security to ensure that this generation grows up with all the necessary information on how to use the internet without putting themselves at risk.

Nepal should invest money in building a strong cyber defense structure that includes advanced threat detection systems, secure data repositories, and event response capabilities. Although this would entail a huge expenditure, it would be worth it in the long run as it would minimize cybercrime and promote economic stability.

To fill the gap in skilled cybersecurity workforce, Nepal needs to develop indigenous human resources. Targeted training programs, scholarships, and partnerships with international cybersecurity organizations are some of the ways this can be done. In this way, Nepal will have an abundant pool of cybersecurity professionals who will protect its digital infrastructure.

In order to strengthen the legal and regulatory frameworks related to cybersecurity, the government should focus on. It is necessary to revise the current statutes to cover new cyber threats and formulate explicit instructions on reporting and taking action against cyber incidents. Also, there should be more cooperation between law enforcement departments, the judiciary and regulatory institutions so that individuals involved in cybercrime can be prosecuted.

To enhance Nepal’s cybersecurity, public-private partnerships need to be established. The government should work with the private sector to share details about cyber threats, produce best practices, and initiate cooperative ventures that can help build resilience to these threats. Moreover, such partnership arrangements enable the transfer of resources and knowledge, which would create an effective nationwide cybersecurity network.

Cyberpunk and cybersecurity are intertwined aspects that we need to work together on if we are to overcome it globally. The Nepalese government in particular should actively engage in bringing national representatives from different parts of the world to relevant international forums where they can share information, expertise and materials, just as their counterparts elsewhere do in such settings. Moreover, the principles of international cooperation will enable Nepal to combat complex transnational cybercrimes and even improve its defense systems against these criminals.

In Nepal, the growing threat of cybercrime is a huge challenge that calls for immediate action. As the country continues to digitize, it must also take steps to protect the country’s digital infrastructure from cyber threats. Nepal can enhance its cybersecurity preparedness and save its future online by creating awareness, creating a cybersecurity framework, developing talent, and cultivating public-private partnerships. It should not be up to the government alone to combat cybercrime; everyone should participate in making Nepal’s online space safe and viable.