Money Transfer Fraud: How to Stay Safe When Sending Money to Nepal

Sending money to Nepal is a regular part of life for most Nepalis in Australia. But with the growth of digital remittance has come a parallel growth in fraud and scams targeting the Nepali community. Nepal Rastra Bank (NRB) issued a public advisory in July 2026 warning about the growing number of financial scams, and Nepal Police has repeatedly urged migrant workers to use authorised channels only.

This guide covers every major type of money transfer fraud targeting Nepalis — and exactly how to protect yourself and your family.

The Scale of the Problem

According to data from the Valley Crime Investigation Office in Kathmandu, 963 online fraud complaints were filed between July 2024 and early 2025, representing total losses of NPR 37.8 crore (approximately USD 2.8 million). The Cyber Bureau of Nepal Police recorded 931 complaints specifically related to eSewa fraud between 2020/21 and March 2025 alone.

"Scammers typically establish contact through social media platforms, emails, SMS messages, websites, phone calls, or in-person interactions before carrying out fraudulent activities." — Nepal Rastra Bank, July 2026

Type 1: Hundi — The Illegal Channel That Can Cost You Everything

Hundi is an informal, unlicensed money transfer system where someone takes foreign currency from you in Australia and arranges for an equivalent amount in NPR to be paid to your family in Nepal — without going through the banking system.

Why people use it: Hundi operators typically offer exchange rates 1–2% better than formal channels, and delivery is often faster.

Why it is dangerous:

• It is illegal — under Nepali law, hundi carries a fine of up to 3x the transaction amount and up to 3 years imprisonment
• Forfeiture — if discovered, both sender and receiver lose the entire amount
• No recourse — if the hundi operator disappears with your money, there is no legal protection or refund mechanism
• Links to crime — hundi networks are often connected to money laundering and other illegal activities
• Cyber fraud risk — Nepal Police has warned that engaging in illegal remittance transactions increases the risk of falling victim to cyber fraud

"The boring legal channel costs you ~1% of the transfer; hundi can cost you everything." — KharchaPatra, 2025

How to protect yourself: Only use licensed, regulated providers. The 1–2% you "save" with hundi is not worth the risk of losing everything. Compare formal providers on our Send Money to Nepal page to find the best legal rate.

Type 2: Fake Payment Screenshots (eSewa/Khalti Fraud)

This is the single most reported financial scam targeting Nepali digital wallet users. Between 2020/21 and March 2025, 931 complaints were filed with the Cyber Bureau over eSewa fraud alone.

How it works:

1. A buyer or seller sends a manipulated screenshot showing a payment they never made
2. They ask the victim to send money back to "verify" or "release" the funds
3. The victim sends real money; the original "payment" never existed

How to protect yourself:

• Always check your own app — if the money is not in your eSewa/Khalti balance, it has not arrived. A screenshot proves nothing.
• Never send money to "verify" or "release" a payment — legitimate payments do not require this
• Wait for the actual app notification before releasing goods or sending money back

Type 3: OTP and Password Fraud

A caller poses as eSewa, Khalti, NIC Asia Bank, or NMB Bank support. They claim to have detected unusual activity on your account. They know your name, sometimes even your balance. They ask for the OTP that arrives on your phone during the call.

The moment you read that OTP aloud, they use it to complete a password reset and transfer your entire balance.

No legitimate company asks for your OTP. Ever. Not once. Not under any circumstances.

How to protect yourself:

• Never share your OTP, PIN or password with anyone — not your bank, not your family, not "customer support"
• Hang up immediately if someone asks for your OTP
• Call the official customer service number from the bank's website (not the number that called you)
• Enable two-factor authentication on all financial accounts

Type 4: Phishing — Fake Websites and Emails

Fraudsters create fake websites that look exactly like Wise, Remitly, Western Union or your bank's login page. They send emails or SMS with links to these fake sites, asking you to "verify your account" or "confirm a transfer".

How it works:

1. You receive an email or SMS that looks like it is from your remittance provider or bank
2. The message says there is a problem with your account or a transfer that needs confirmation
3. You click the link and land on a fake website that looks real
4. You enter your login credentials — which the fraudster now has
5. They log into your real account and transfer your money out

How to protect yourself:

• Never click links in emails or SMS — always type the provider's URL directly into your browser
• Check the URL carefully — scammers use domains like "wise-transfer.com" or "remitly-verify.net" instead of the real "wise.com" or "remitly.com"
• Look for the padlock icon in the browser address bar (HTTPS)
• Enable two-factor authentication on all financial accounts
• If an email seems suspicious, log into your account directly (not via the email link) to check for real notifications

Type 5: Social Media and Romance Scams

Nepal Rastra Bank's 2026 advisory specifically called out romance scams conducted through social media as a growing threat. These scams typically involve:

1. A fraudster creates an attractive social media profile and builds a relationship with the victim over weeks or months
2. Once trust is established, they ask for money — for a flight to visit, a medical emergency, a business opportunity, or "customs fees" for a gift
3. The victim sends money through remittance services
4. The fraudster disappears

How to protect yourself:

• Never send money to someone you have not met in person
• Be suspicious of anyone who professes love quickly or asks for money after a short period
• Reverse image search profile photos — scammers often use stolen photos
• call before sending any money — scammers will avoid calls

Type 6: Fake Job Offers and Advance Fee Fraud

Scammers post fake job listings on social media or send messages offering high-paying jobs in Australia, Canada or Europe. They ask for "registration fees", "visa processing fees" or "documentation charges" upfront — and then disappear.

How to protect yourself:

• Legitimate employers do not ask for upfront fees
• Verify job offers through official company websites
• Be wary of jobs that offer unrealistically high salaries for minimal qualifications
• Never pay "customs fees" or "release fees" for packages or gifts

Type 7: SIM Swap Scams

Fraudsters duplicate your mobile SIM card (or convince your telecom provider to transfer your number to a new SIM) to intercept two-factor authentication codes. Once they have your OTPs, they can access your bank and wallet accounts.

How to protect yourself:

• Contact your telecom provider immediately if your phone suddenly loses signal (could indicate a SIM swap)
• Use app-d 2FA (like Google Authenticator) instead of SMS-d 2FA where possible
• Set a PIN or password on your telecom account

Nepal Rastra Bank's 2026 Advisory: Key Warnings

In July 2026, NRB's Financial Inclusion and Consumer Protection Department issued a public advisory identifying these key scam types:

• Promises of unexpected cash rewards, lottery winnings or gifts
• Demands for advance taxes, service charges or bank account details
• Fake job offers requiring registration fees
• Schemes involving transfer of illicit funds
• Requests to transfer money to accounts unrelated to the actual business entity
• Impersonation of government agencies, financial institutions, friends or relatives
• Fake payment confirmations displayed at retail stores

The Five Rules That Prevent Almost Every Scam

d on analysis of Nepal's most common financial scams, these five behaviours make the overwhelming majority of scams ineffective:

1. Verify payments in your own app — not in a screenshot. If the money is not in your balance, it has not arrived.
2. Never share your OTP — with anyone, for any reason. No legitimate organisation will ever ask for it.
3. Use only licensed, regulated providers — check AUSTRAC registration in Australia and NRB licensing in Nepal. Never use hundi.
4. Type URLs directly — never click links in emails or SMS to access financial services.
5. If it seems too good to be true, it is — better exchange rates, lottery wins, unexpected gifts, or job offers that require upfront fees are all scams.

How to Report Fraud in Nepal

If you or your family has been a victim of financial fraud in Nepal, take these steps immediately:

1. Preserve evidence — screenshots, transaction slips, SMS/chat logs, call recordings, phone numbers, account numbers and website URLs
2. Notify your bank or payment provider immediately — request a transaction hold, account freeze or reversal. Acting fast materially improves the chance of recovering funds.
3. File a complaint with the Cyber Bureau of Nepal Police — they handle online and digital financial fraud cases
4. File an FIR — under the Banking Offense and Punishment Act, 2064 and/or the Muluki Criminal Code, 2074
5. Report to Nepal Rastra Bank — NRB's Financial Inclusion and Consumer Protection Department handles complaints against regulated entities

How to Report Fraud in Australia

1. Contact your remittance provider immediately — they may be able to halt the transfer
2. Report to Scamwatch — at scamwatch.gov.au, run by the ACCC
3. Report to your bank — if you paid by card, request a chargeback
4. File a complaint with AFCA — the Australian Financial Complaints Authority at afca.org.au
5. Report to AUSTRAC — if you suspect money laundering or terrorist financing
6. Contact local police — for significant fraud amounts

Safe Sending Checklist

Before every transfer to Nepal, run through this checklist:

• ✅ I am using the official app or website (typed directly, not from an email link)
• ✅ The provider is licensed (AUSTRAC registered, NRB-licensed partner)
• ✅ I have verified the recipient's name, bank account number and phone number
• ✅ I am not sharing my OTP, PIN or password with anyone
• ✅ I am not using hundi or any informal channel
• ✅ I am not sending money to someone I have not met in person
• ✅ I have checked the final NPR amount the recipient will receive
• ✅ I have the transaction reference number saved

Related Res

• Send Money to Nepal — Live Rate Comparison (only lists licensed providers)
• Best Ways to Send Money to Nepal: Provider Comparison
• Why Nepalis in Australia Send Money Home
• How Much Money Does Australia Send to Nepal?
• Most Reliable International Money Transfer to Nepal
• AUD to NPR Exchange Rate Converter

s: Nepal Rastra Bank (NRB) public advisory July 2026, Nepal Police Cyber Bureau data, Valley Crime Investigation Office, ScamSpike Nepal scam analysis 2026, Lawin Partners fraud guide 2026, AUSTRAC, Scamwatch (ACCC), KharchaPatra. Last updated August 2026.