Electronic Fraud (Cyber Fraud) Risk in the Banking Industry of Nepal

Electronic Fraud (Cyber Fraud) Risk in the Banking Industry of Nepal

Sushil Mahato, Rakesh Kumar Nayak, Aryan Dipak Raut, Jyoti Yadav

Sambhram Institute of Technology, Bangalore, India,

Sambhram Institute of Technology, Bangalore, India,

National Academy(campus)

Abstract - The rapid adaptability of digital banking technologies in Nepal has exposed banks to increasingly rising risks of electronic fraud and cyber threats. In this paper, the authors investigate common types of cyber fraud faced, assess their impact on the banking sector, and propose a framework on how to mitigate these risks using global cybersecurity standards like the NIST framework. This research is therefore informed by data collected through surveys with banking professionals and secondary analysis of already existing incidents in Nepal. It highlights the vulnerabilities and suggests some robust strategies to protect Nepalese banks from cyber fraud.

Key Words:  Cybersecurity in banking, digital banking threats, phishing attacks, AI-driven fraud detection, regulatory frameworks.