In Colombo, Sri Lanka, on July 18th, the Financial Crimes Investigation Division (FCID) of the Criminal Investigation Department (CID) made a significant revelation during a session at the Colombo Chief Magistrate’s court.
According to the disclosure, a substantial internet-based scam was brought to light, indicating a worrisome trend in the country.
The investigation uncovered that cybercriminals exploited the internet to defraud victims of over 50 billion Sri Lankan rupees.
This revelation has brought attention to Sri Lanka’s growing vulnerability as a target and potential hub for cybercrime activities.
International Cybercrime Ring Busted
The Criminal Investigation Department (CID) has uncovered that the funds obtained through fraudulent means have been traced to China, shedding light on the global scale of these illicit activities.
This cross-border aspect of the scam underscores the intricate difficulties in both tracing and recuperating misappropriated funds.
In a significant development, the CID has officially announced that specialised investigation teams from China and Singapore are slated to travel to Sri Lanka to collaborate on the ongoing probe.
This collaborative effort seeks to leverage international resources and expertise in addressing the complexities of the case. Moreover, the CID has also reached out for cooperation from authorities in India and Pakistan in order to pursue the investigation into online fraud schemes that have resulted in the loss of millions of rupees.
Identification Parade and Arrests
During an identification parade, the three individuals accused of embezzling large sums of money were positively identified by their accusers.
Following this, prison officials presented a lineup consisting of 34 foreign nationals alongside two Sri Lankans who were implicated in the fraudulent scheme.
The suspects included a mix of young men and women from various countries including India, Bangladesh, Indonesia, Algeria, and Nepal.
Sophisticated Scam Operations
Inspector U.B. Galwala, from the Financial Crimes Investigation Division (FCID), presented an exhaustive report that provided intricate details regarding the highly sophisticated cybercrimes.
The individuals under suspicion, who were evading an investigation in Dubai, orchestrated a complex financial fraud by leveraging a network of 100 Dubai bank accounts and 46 Sri Lankan bank accounts.
This scheme made use of advanced technology, including 45 computers and mobile phones, and was executed through cryptocurrency platforms such as Binance.
The central operation was based in a three-story hotel in Negombo, which they rented for a substantial monthly fee of 8 million rupees.
It is worth noting that the suspects went as far as hiring private security guards, and their criminal activities exhibited an exceptionally organised approach.
Legal Actions and Asset Seizure
The court has issued a mandate for the confiscation of 15 million rupees in foreign currency, which is to be handed over to the Central Bank of Sri Lanka.
Additionally, the Chief Magistrate has imposed a restriction on access to the hotel where the suspects have been staying, pending the conclusion of the investigation.
Broader Implications
The recent occurrence of this large-scale scam serves as a significant reminder of the pressing necessity for Sri Lanka to reinforce its cybersecurity measures and legal frameworks.
The country needs to invest in advanced technological capabilities, increase international collaboration, and establish updated legal mechanisms to effectively combat the rising threat of increasingly sophisticated cybercrimes.
The development and implementation of comprehensive cybersecurity strategies, along with necessary legal provisions and international partnerships, will be pivotal in safeguarding Sri Lanka’s digital infrastructure and preventing future cyber attacks.
Ongoing Investigation
The 34 suspects, including Dr. Thavalama Gamage Prasanna from Kandy General Hospital and his associates, have been kept in custody until July 25th.
The court has instructed the Criminal Investigation Department (CID) to provide updates on the progress of the investigation. It has come to light that the suspects’ legal representatives are arguing that they were unaware of the illegal nature of the activities.
This development sheds light on the growing cyber threat faced by Sri Lanka, underlining the urgent need for strong measures to safeguard the country’s financial integrity in the face of evolving cybercrime.
