Suman Upadhyaya, a resident of ward 4 of Jayaprithvi Municipality in Bajhang, received a message from a friend on Facebook Messenger in September last year. The message contained a link. Shortly afterwards, the friend called him and said, “If you fill in the form provided in the link with your email address, phone number and eSewa or Khalti ID for payment, and deposit Rs2,000, you will start earning money regularly by liking advertisements of the listed products.”

Suman, who works as an assistant at a printing press in the district headquarters Chainpur, was tempted by the promise of easy earnings. Following his friend’s instructions, he filled out the online form of a platform called MPlus. The system required users to deposit a minimum of Rs2,000 via digital wallet—eSewa or Khalti— to open an account. After depositing Rs2,000, Suman’s account began showing daily earnings of Rs300.

He was told that depositing Rs4,000 would yield Rs600 a day, while there were also options to deposit as much as Rs1-1.5 million at once, with proportionately higher daily returns. “Once the account was opened, we had to press like on the advertisements of products shown on the platform, and there were extra bonuses for bringing in new members,” said Suman.

By the first week of November, more than 51,000 users had joined the MPlus system. Convinced by the growing numbers and apparent earnings, Suman encouraged friends and relatives to join. Within 15 days, his account showed a balance of Rs12,000. However, when he tried to transfer the money to his bank account on September 19, the MPlus system stopped working. His friend’s account, as well as those of others he had recruited, also became inactive. “I not only cheated myself, but others were cheated because of me,” he said, adding that the online system shut down completely from that day.

According to Suman, many people deposited their earnings believing that, once invested, the income would continue automatically. Some put in their daily wages, while others invested money earned from small businesses. “Some even borrowed money to become members,” he said. In this way, people ranging from those with only basic literacy and simple mobile-phone skills to well-educated individuals were cheated by MPlus.

Driven by the lure of higher returns, some people invested as much as Rs50,000 to Rs60,000. “When the system was abruptly shut down, everyone lost their money,” he said. He estimated that the fraudsters may have siphoned off Rs150-200 million in less than a month before disappearing.

What began as a harmless Facebook message promising easy money has turned into a painful lesson for hundreds of families across the Sudurpaschim’s hills, as pyramid-style online scams quietly spread from village to village, draining savings and eroding trust in close-knit communities.

Even after the collapse of MPlus, online fraudsters did not retreat. Instead, another network operating under the name SMC App spread rapidly across Bajhang, Bajura and other remote districts, targeting communities newly connected to the internet. The app promised monthly earnings based on deposited amounts, ranging from Rs3,000 to more than Rs 20.1 million. Users were told to watch short videos daily and earn money, with a 10 percent commission for recruiting others—a classic pyramid model.

Local politicians, teachers and employees of local units were among those who promoted the app, lending it credibility. “When people we trusted encouraged us, we believed them,” said Kabita Agri of ward 2 of Masta Rural Municipality. Persuaded by a relative working at the local government office, she deposited Rs9,900—money earned from selling vegetables—after being promised a similar monthly return. She later opened accounts in the names of her husband and children after borrowing money.

The app showed rising earnings, reinforcing trust. But when Kabita tried to withdraw the money, she received a notification demanding Rs 2,740 in “tax”, to be paid into a personal eSewa account. “That raised my suspicion,” she said. A neighbour warned her that taxes are paid to the government, not individuals. Within days, the app stopped functioning. Her family lost Rs39,600 in total.

Some early users had indeed received payouts, which they used to lure others. “At first, a few people earned seven or eight times their investment,” said an employee of Masta Rural Municipality on condition of anonymity. “Once the number of members surged, they introduced the ‘tax’ excuse. Now the app is completely shut.” He himself lost Rs33,800.

According to villagers, more than 600 people were cheated in Masta alone, with losses exceeding Rs100 million. Victims are concentrated in remote areas such as Masta, Saipal, Surma, Talkot and Durgathali rural municipalities, and Bunglal Municipality of Bajhang. “Everyone believed the promise of good returns. Many simple villagers invested borrowed money. In the end, everyone was trapped,” said Sher Bahadur Okheda, another victim who lost Rs 33,800.

Similar stories have been reported from Bajura, where internet access has only recently expanded. “Almost no one escaped,” said Gangaraj Pandit, who runs a stationery shop in Martadi, the district headquarters of Bajura. “Social campaigners, politicians, civil servants and the general public—everyone was cheated.” He estimates that SMC siphoned off more than Rs20–30 million from Bajura alone, with over 1,500 people affected across the district. Yet, no formal investigation has been initiated at the local level.

Digital fraud cases are rife across Nepal, particularly in the areas with limited digital literacy. Experts have warned that platforms promising high returns with minimal effort often exploit trust networks in rural areas.

Despite widespread losses, many victims have not filed complaints. “We have heard rumours about SMC fraud, but no one has come to file a complaint,” said Deputy Superintendent of Police (DSP) Iqwal Awari, chief of the District Police Office in Bajura. Bajhang’s DSP Khagendra Dhamala said fear of embarrassment, lack of legal knowledge and distrust of authorities discourage victims from coming forward.

According to Deepak Raj Awasthi, spokesperson for Nepal Police’s Cyber Bureau, a total of 255 complaints related to the SMC app have already been registered, mostly by Kathmandu Valley residents. “The app was launched on Google Play in March 2025 and had over 72,000 downloads by August,” he said. Police recently arrested 11 people, including a Chinese national, on charges of online fraud. Complaints cite losses ranging from Rs 50,000 to Rs2.5 million.

Investigators say the app was operated by a company registered as SMCN Advertising Service Centre, which lured users with promises of high returns and recruitment bonuses. Last fiscal year alone, the Cyber Bureau recorded 18,926 cybercrime complaints nationwide, with online financial fraud accounting for nearly 41 percent.