October 19, Colombo (LNW) Sri Lanka is rapidly becoming a focal point for international cybercrime, with law enforcement authorities arresting nearly 200 foreign nationals in a series of nationwide raids.
These operations reveal a troubling trend of internet scams and cyber fraud, targeting personal accounts rather than banking systems or financial institutions.
The Sri Lanka Computer Emergency Response Team (SL CERT) has reported a significant increase in online financial fraud cases in 2024.
According to Charuka Damunupola, SL CERT’s Senior Information Engineer, the agency has received over 340 complaints involving financial scams this year.
“Up to September, we’ve logged 7,210 complaints related to online scams, most of them originating from social media platforms,” said Damunupola. He noted that around 20% of these cases involve financial fraud, pointing to a surge in internet scams targeting online banking users.
Damunupola highlighted the growing trend of cybercriminals exploiting vulnerabilities in users’ security practices, especially through One-Time Passwords (OTPs).
Many victims, he explained, fall prey due to a lack of awareness about safeguarding their OTPs or recognizing fraudulent websites. This has led to an increasing number of people being deceived by online banking scams.
Police Media Spokesman DIG Nihal Talduwa emphasized that user negligence is often a significant factor in these scams, rather than any fault of the banking institutions.
Over 200 people, including foreign nationals, have been arrested in connection with these fraudulent activities, and authorities have seized hundreds of mobile phones and laptops from these cybercrime hubs. Talduwa pointed out that many fraudsters exploit economic hardships, targeting locals with false promises to rent properties.
In an effort to curb the involvement of Chinese nationals in these fraud operations, Sri Lanka is seeking cooperation with China. The Chinese Embassy in Colombo has expressed its commitment to assisting Sri Lankan law enforcement while protecting the rights of Chinese citizens involved in these cases.
Minister Wijitha Herath acknowledged that internet fraud is a global issue but emphasized that investigations are ongoing to determine if Sri Lanka is becoming a center for such activities. The country’s economic instability has made its citizens more vulnerable to fraudsters who exploit their desperation with fraudulent loans, fake investment schemes, and job opportunities via social media.
The Central Bank of Sri Lanka (CBSL) has reported numerous incidents where scammers impersonate legitimate financial institutions to trick individuals into revealing sensitive banking information. A notable tactic involves social media investment scams, where fraudsters pose as friends or acquaintances to lure victims into fake investment schemes, promising high returns.
These scammers gain trust by pretending to be a friend or acquaintance and then persuade users to invest money in non-existent projects.
In some cases, they manipulate victims into sharing their OTPs to “verify” transactions, which then allows them to access the victims’ bank accounts and withdraw funds. The criminals often continue their activities by planting additional fraudulent contacts within the victim’s network to extend their scam.
These incidents underscore the urgent need for public education on cybersecurity practices to help people recognize and avoid such scams.
