Investigation Reveals $20 Million Scam in Nepal’s Mount Everest Rescues
An investigation has uncovered a substantial $20 million insurance scam in Nepal, where some guides are allegedly faking or even inducing mountain rescues. According to reports from The Kathmandu Post, this deceitful practice includes spiking the food of unsuspecting hikers, particularly around Mt. Everest, the world’s tallest peak.
Kathmandu, the capital of Nepal, is a popular starting point for adventurers aiming to summit Everest, which straddles the border between Nepal and China’s Tibet Autonomous Region. Following earlier reports of fraud in 2018, the Nepali government formed a fact-finding committee and issued a 700-page report on the issue. Although some reforms were introduced, a recent investigation by Nepal Police’s Central Investigation Bureau (CIB) reveals that the fraudulent activities have only intensified.
Two main schemes have emerged from the CIB’s findings. First, guides are reportedly telling exhausted trekkers that faking an illness can lead to helicopter evacuations. In another alarming scenario, guides and hotel staff are said to scare trekkers by claiming they are in immediate danger from altitude sickness, pushing them to seek unnecessary evacuations. Investigators discovered that in some cases, hikers were given Diamox (a medication for altitude sickness) along with excessive water to trigger symptoms justifying a rescue. Alarmingly, there are also allegations of guides mixing baking powder into food to make hikers feel unwell.
In one recorded case, a helicopter was used to pick up four individuals, but the arrangement was made to claim separate rescues for each. According to the investigation, hospitals are paying 20% to 25% of the insurance payouts to trekking agencies and helicopter companies in exchange for patient referrals. This has created an environment where inflated invoices benefit trekking businesses, and some tourists are reportedly even offered money to participate in the scheme.
From 2022 to 2025, investigators noted that around 4,782 foreign patients were treated at hospitals implicated in the scam, with 171 cases confirmed as fraudulent rescues. One hospital, Era International, reportedly received over $15.87 million for these activities, while Shreedhi International garnered about $1.22 million. Various rescue services, like Mountain Rescue Service, logged numerous fake rescues which, combined with other crimes, netted them substantial insurance payouts.
Recently, the CIB charged 32 individuals with serious offenses related to state crimes and organized fraud. Nine people were arrested, while others are currently at large. Those charged include personnel from multiple helicopter services, as well as medical professionals from implicated hospitals.
This situation highlights alarming corruption within Nepal’s trekking tourism industry, raising urgent questions about safety and accountability for climbers seeking to conquer Everest.
