Mount Everest fake rescue, insurance scam: Trekkers poisoned, frightened in $20 million fraud

Mount Everest sherpas reportedly staged medical emergencies, leading to fake rescues as part of a $20 million insurance scam. Thirty-two people including trekking company owners, helicopter operators and even hospital executives have been charged for this scam.

According to The Kathmandu Post, the fake rescue scam was first exposed in 2018, following which a committee proposed many changes in a 700-page report. However, the news site reported that it learnt that instead of stopping, the scam had doubled down. 

The Central Investigation Bureau (CIB) identified two main methods used to create fake emergencies. Some tourists, unwilling to walk back after long treks, were advised by guides to feign sickness to secure helicopter rides. The guides then managed the process. Another method exploited common altitude sickness symptoms above 3,000 metres. Guides and hotel staff reportedly exaggerated risks to frighten trekkers into urgent evacuations. In some cases, medication and excessive water intake were used to induce symptoms justifying rescue calls.

Investigators found instances where substances like baking powder were added to food to make tourists unwell. Multiple passengers were found to have shared a helicopter, but separate full-price invoices were sent to insurers, inflating claims. Fake flight manifests and hospital records, including digitally signed discharge summaries from uninvolved doctors, were also used to support the fraud.

One hospital employee admitted to providing an old X-ray report from another facility to support insurance claims for foreign trekkers. Hospitals pay commissions of 20 to 25 percent to trekking companies and helicopter operators for patient referrals. Guides and companies benefitted from inflated invoices, and sometimes tourists received cash incentives to participate.

Between 2022 and 2025, the CIB investigation identified 4,782 foreign patients treated at implicated hospitals. Of these, 171 cases were confirmed as fake rescues. Era International Hospital received deposits exceeding $15.87 million linked to these activities, while Shreedhi International Hospital received over $1.22 million, the report said.

Among helicopter operators, Mountain Rescue Service conducted 171 fraudulent rescues out of 1,248 flights, claiming about $10.31 million. Nepal Charter Service carried out 75 fake rescues from 471 flights, claiming $8.2 million. Everest Experience and Assistance was linked to 71 suspicious rescues from 601 flights, with claims totalling $11.04 million.

In one documented case, four tourists were rescued on a single helicopter flight but billed as separate rescues, resulting in combined insurance claims of $31,100 for the flight and $11,890 for hospital charges, the report added. 

Two Canadian trekkers also filed a case with CIB in 2025, alleging fraudulent evacuation during their trek in November. Their complaint stated that oxygen readings were described to insurers as dangerously low, unnecessary CT scans, ICU admissions, and exaggerated claims by the hospital to justify the paperwork. 

The report stated that most travel insurance policies require the insurer to be contacted before an evacuation takes place. However, due to communication hindrances, this protocol is rarely followed. Large insurance companies often maintain their own 24/7 emergency response teams, while smaller insurers outsource these services to global assistance firms. When cases arise from Nepal, these firms typically engage local Nepali assistance companies to review invoices, medical reports, and flight manifests on their behalf. This system creates opportunities for fraud to go undetected.