Increased cross-border cyber crime networks and police challenges

A team of police officers from the District Police Range (DPR), Lalitpur, and the Kathmandu Valley Crime Investigation Office (KVCIO) arrested 24 people on Saturday, including 10 Indians and 14 Nepalis, for running an online betting business out of two rental homes in Sanepa, Lalitpur. Over the previous six months, the business reportedly generated Rs 3.04 billion in revenue from online betting through a variety of apps.

The arrest on Saturday is not the first instance of this type of thing happening. Recently, there has been an increase in cross-border cybercrime.

A group of KVCIO officials detained two valley residents this week for running an internet gaming and betting operation. It was discovered that they had enabled unlawful transactions totaling more than Rs 24 million.

Just one month ago, the Central Investigation Bureau (CIB) dismantled a global online scamming network that had defrauded unsuspecting Nepali individuals in Nepal and overseas out of “hundreds of millions of rupees.” They enabled illicit online transactions totaling more than Rs 3 billion.

The fact that the thieves were running their enterprises out of rented property in the Kathmandu Valley is one similarity among the three cases under consideration. The crew that was arrested on Saturday rented two residences, one for their living quarters and the other to conduct the betting activity, according to the KVCIO. The culprits were apprehended from rented rooms in the first two cases.

The fact that all of the arrests were made possible by police tip-offs is another similarity.

Districts outside of the capital lack specific crime-focused units like the KVCIO. Nepal Police are baffled by the increase in cross-border internet crime cases, and the question remains: Can the police apprehend these criminals if they are operating from rented real estate in regions outside the valley?

Hemant Malla, a former Deputy Inspector General (DIG) of Police, told Republica that many of these criminal organizations are currently avoiding police action.

He asserts that the largest obstacle to successfully locating and apprehending such offenders may be the lack of funding for the advancement of police technology and manpower as well as the disorganized structure of governmental agencies.

“The practice of renting out real estate to carry out such illegal activities exposes the unstructured nature of tenant registration at Nepali government offices,” former DIG Malla stated. “Since most of these arrests are the result of outside tips, funding for the expansion of Nepal Police’s workforce and technological capabilities is vital.”

The arrest on Saturday, according to KVCIO Superintendent of Police (SP) Kaji Kumar Acharya, underscores the laxity of Nepali legislation, which is a primary factor in the country’s increasing appeal as a hub for online criminal organizations.

First, SP Acharya informed Republica, “We don’t have a system in place to register real estate property tenants in government databases. Second, our rules are comparatively lax when it comes to cyber offenses; offenders are detained in court custody for seven to ten days before being released on bail.” Thirdly, compared to other nationals, skilled Nepali workers typically earn less money.

Police do have units outside the valley to handle such situations, according to Nepal Police DIG Dinesh Kumar Acharya, a spokesman for the force. Although the KVCIO makes work simpler in the valley, we also keep an eye on any criminal organizations outside of it, he said, adding, “Outside the capital, of course, we also have specialized units.”