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

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.