Cybersecurity in Nepal: Current Threats, Laws & Future Trends

Cybersecurity in Nepal has become a critical national concern as the country rapidly embraces digital transformation. From online banking and government portals to social media and e-commerce platforms, Nepal’s dependence on the internet is growing faster than ever. However, this digital growth also brings serious cyber risks that individuals, businesses, and government institutions can no longer ignore.
Over the past few years, Nepal has witnessed a sharp rise in cybercrime, including phishing scams, ransomware attacks, social media hacking, and data breaches. With more Nepalis using mobile banking, digital wallets, and online services, cyber attackers are actively exploiting weak security practices and low awareness.
In 2026, cybersecurity in Nepal is no longer just an IT issue it is a matter of national security, economic stability, and public trust. This article provides a complete, up-to-date guide covering Nepal’s current cyber threats, laws, statistics, government efforts, and practical protection strategies.

Current Cybersecurity Situation in Nepal

Nepal’s cybersecurity landscape is evolving, but challenges remain significant. The country is still in the early stages of building strong cyber defense systems compared to global standards.

• Rapid Digital Growth and Increased Risk
• Expansion of online banking and digital wallets
• Growth of government e-services
• Increased use of social media and messaging apps
• Rise of remote work and cloud services

While these advancements improve convenience, they also expand the attack surface for cybercriminals.

Growth in Cybercrime

Reports from the Nepal Police Cyber Bureau show a consistent year-on-year increase in cybercrime cases. Many incidents go unreported due to lack of awareness, fear of legal complexity, or uncertainty about where to file complaints.

Common issues include:

1. Online fraud
2. Account takeovers
3. Fake websites
4. Identity theft
5. Financial scams via SMS and social media

Major Cyber Threats in Nepal

Nepal faces a wide range of cyber threats affecting individuals, organizations, and government institutions.

Phishing & SMS Scams

Phishing is one of the most common cyber attacks in Nepal. Attackers send fake SMS messages or emails pretending to be from banks, telecom providers, or government agencies.

Typical phishing tactics:

• Fake prize or lottery messages
• Urgent bank account verification alerts
• Fraudulent job offers
• Fake NRB or eSewa/Khalti notices

Many users unknowingly share OTPs, passwords, or personal information.

Ransomware Attacks

Ransomware attacks are increasing, particularly targeting:

• Small and medium businesses
• Educational institutions
• Healthcare organizations

Attackers encrypt systems and demand payment often in cryptocurrency to restore access. Due to weak backup practices, many victims feel forced to pay.

Data Breaches in Nepal

Data breaches in Nepal are becoming more frequent, affecting both public and private sectors. Poorly secured databases, misconfigured servers, and outdated software are common causes.

Leaked data often includes:

• Phone numbers
• Email addresses
• Citizenship details
• Login credentials

Such breaches increase the risk of identity theft and financial fraud.

Social Media Account Hacking

Facebook, Instagram, and WhatsApp account takeovers are extremely common in Nepal. Attackers exploit:

• Weak passwords
• Reused credentials
• Fake login pages
• Malicious browser extensions

Hacked accounts are later used for scams, impersonation, or political misinformation.

Government Website Defacement

Several Nepali government websites have faced defacement attacks, damaging public trust and exposing weak security practices. These attacks are often politically motivated or done to demonstrate vulnerabilities.

Cybercrime Statistics in Nepal (Latest)

Cybercrime reporting in Nepal has improved, but the actual scale is likely much larger than official numbers.

Nepal Police Cyber Bureau Cases

According to public disclosures:

• Cybercrime complaints have increased multiple times compared to pre-2020 levels
• Online fraud and social media crimes make up the majority of cases
• Financial losses from cybercrime are rising each year

Year-Wise Growth Trend

• Early 2020s: Moderate cybercrime reporting
• Post-COVID era: Massive surge due to digital adoption
• 2025–2026: Cybercrime becoming more organized and sophisticated

Real Incidents (Publicly Known)

• Large-scale phishing campaigns targeting bank customers
• Data leaks from poorly secured web portals
• Fake investment schemes promoted via social media

Cybersecurity Laws and Policies in Nepal

Electronic Transactions Act (ETA)

The Electronic Transactions Act (ETA) is Nepal’s primary cyber law. It criminalizes:

• Unauthorized system access
• Data damage and theft
• Online fraud
• Digital identity misuse

However, the law is often criticized for being outdated and lacking clarity for modern cyber threats.

Role of Nepal Police Cyber Bureau

The Cyber Bureau under Nepal Police handles:

• Cybercrime investigations
• Online complaint registration
• Digital forensic analysis
• Public awareness initiatives

Despite limited resources, the bureau plays a crucial role in enforcing cybersecurity laws in Nepal.

Legal Challenges

Major legal gaps include:

• Lack of a comprehensive data protection law
• Slow investigation processes
• Limited cyber forensic capacity
• Low conviction rates

Strengthening Nepal’s cyber legal framework is essential for future resilience.

Government Efforts to Improve Cybersecurity

The Government of Nepal has started recognizing cybersecurity as a national priority.

Digital Nepal Framework

The Digital Nepal Framework aims to:

• Improve digital infrastructure
• Secure government systems
• Promote digital literacy
• Encourage cybersecurity best practices

Awareness Programs

Government agencies, often in partnership with private organizations, conduct:

• Cyber awareness workshops
• School and college programs
• Public safety campaigns

However, coverage remains limited outside major cities.

Institutional Improvements

• Strengthening government CERT capabilities
• Improving monitoring of government portals
• Collaborating with international cybersecurity organizations

Role of Private Sector & Ethical Hackers

The private sector plays a critical role in strengthening cybersecurity in Nepal.

Bug Bounty Programs

Some Nepali companies are beginning to adopt bug bounty and vulnerability disclosure programs, encouraging ethical hackers to report flaws responsibly.

Security Audits

Private cybersecurity firms conduct:

• Web application security testing
• Network penetration testing
• Compliance assessments

These services are increasingly in demand across banking, fintech, and telecom sectors.

Ethical Hacking in Nepal

Ethical hacking in Nepal is gaining popularity among youth and professionals. Responsible security researchers help identify vulnerabilities before criminals exploit them.

Cybersecurity Awareness in Nepal

Lack of awareness remains one of Nepal’s biggest cybersecurity weaknesses.

Students

• Poor password hygiene
• Oversharing on social media
• Low understanding of phishing

Businesses

• No formal security policies
• Outdated software
• Weak access controls

Government Employees

• Limited cybersecurity training
• Reliance on legacy systems
• High risk of targeted attacks

Improving awareness at all levels is crucial.

How Individuals & Businesses Can Stay Safe

Practical Cybersecurity Tips

• Use strong, unique passwords for every account
• Enable two-factor authentication (2FA)
• Never share OTPs or verification codes
• Verify links before clicking
• Keep software and devices updated
• Back up critical data regularly
• Use trusted antivirus and firewall solutions
• Train employees on cybersecurity awareness

These steps significantly reduce cyber risk.

Future of Cybersecurity in Nepal (2026 & Beyond)

The future of cybersecurity in Nepal depends on coordinated efforts across government, private sector, and citizens.

Key Trends

• Stronger cyber laws and regulations
• Growth of local cybersecurity companies
• Increased demand for skilled professionals
• Adoption of AI-based security solutions
• Better collaboration with global cyber agencies

If addressed properly, Nepal can build a resilient and secure digital ecosystem.

Cybersecurity in Nepal is at a turning point. As digital adoption accelerates, cyber threats will continue to grow in scale and complexity. From phishing scams and data breaches to ransomware and social media hacking, the risks are real and increasing.

However, with stronger laws, improved awareness, ethical hacking, and responsible digital behavior, Nepal can significantly improve its cybersecurity posture. Government initiatives, private sector involvement, and informed citizens must work together to secure Nepal’s digital future.

In 2026 and beyond, investing in cybersecurity in Nepal is not optional it is essential for protecting individuals, businesses, and national interests.