Man uses AI to fake Rs 1.2 lakh Nepal flood donation, diverts relief funds via own QR code

Nepal Police have arrested a 32-year-old man in Ramechhap district for allegedly utilising artificial intelligence tools to falsify a high-value donation receipt and attempting to divert disaster relief funds into his personal bank account. The suspect, identified as Bhagwan Karki of Gokulganga Rural Municipality, was taken into custody following an investigation by the District Police Office, Ramechhap. Authorities revealed that Karki used the AI chatbot ChatGPT to generate a fraudulent eSewa transaction statement showing a fake deposit of NPR 120,000, approximately $782, credited to the Prime Minister’s Disaster Relief Fund.

According to police officials, the falsified digital receipt displayed "PRIME MINISTER'S DISASTER RELIEF FUND" as the recipient and carried a legitimate-looking transaction sequence. Karki subsequently posted the fake statement on social media platforms, posing as a generous benefactor supporting victims of the recent devastating Bhotekoshi flash floods. However, alongside the fake proof of payment, he attached a QR code linked directly to his personal eSewa and bank accounts, soliciting secondary contributions from the public under the guise of relief fundraising.

Police Inspector Kamal Raut, Information Officer at the District Police Office in Ramechhap, confirmed the arrest and noted that formal legal proceedings under fraud and digital misrepresentation laws are currently underway.

The incident comes amidst a surge of digital financial fraud targeting disaster response efforts in the country. Devastating flash floods and landslides in central and northern Nepal have resulted in hundreds of casualties and significant infrastructure damage, prompting billions of rupees in public donations.

In response to rising instances of AI-driven scams and unauthorized QR codes, the Nepalese government and Nepal Police issued an official alert urging citizens to donate exclusively through verified channels. Authorities emphasized that contributions should only be made using the official portal and bank accounts explicitly designated under the "Prime Minister Disaster Relief Fund" to prevent financial diversion during the ongoing humanitarian crisis.