Most Sri Lankans started using digtal systems to make their payments following COVID-19, and this also marks the beginning of a spike in digital scams, Chief Executive Officer of LankaPay, Channa de Silva said in a recent TV programme on Derana TV.

“However, digital scams are very low as a percentage of online transactions. The Central Bank appointed a committee to investigate digital fraud and it has representatives from all relevant sectors. The committee carried out a survey and found that most people didn’t know the importance of protecting their passwords,” he said.

De Silva added that most Sri Lankans don’t understand that data is confidential, and they often get scammed because they share private information.

“Scammers are persistent, and you must be vigilant. You must remember basics like one must never share OTPs or other passwords. If someone makes you an offer that is too good to be true, you must assume that the person is trying to scam you,” he said.

Meanwhile, Director of the Payments and Settlements Department- Central Bank of Sri Lanka (CBSL), K. V. K. Alwis said most Sri Lankans do not know that One Time Passwords (OTPs) should not be shared.

“Scammers often target people who collect money for medical emergencies. Let’s say I have a relative who needs a kidney transplant. I place an advert on newspapers, or social media, asking for donations. Given that I am expecting funds from philanthropists, I have to put the name and the mobile number of the account holder, account number and the bank branch on the advert. A scammer can call me and say that they have deposited money into the account, ask if I had received a code from the bank, and he would ask me to share this number with him. This is the OTP and if I give him the OTP, the scammer can secure access to my account and he can drain it,” he said.

Earlier banks would only send messages in English, he said. However, now they send messages in all three languages so that people understand the meaning.

“We have to reduce the gaps that scammers use. We are exploring the possibility of enabling mobile financial transactions to be conducted exclusively through a phone using the SIM card associated with the bank-registered number,” he said.

Alwis also said a person may receive a link by someone who promises a foreign job or remote work. Once someone clicks the link, they are taken to a website that asks for documents such as copies of the NIC, birth certificate, passport, etc.

“They might ask for money and you may realise that you are walking into a scam and not pay any money, but you may have already given very sensitive personal information to malicious third parties. There are many things that such malicious people can do with such sensitive information and documents such as your NIC,” he said.

Alwis added that scammers also target the elderly who take out cash at ATMs. These individuals often follow the elderly and offer assistance to withdraw money. “Then they swap the cards,” he said.

The CBSL official said people of all ages and educational backgrounds become victims of digital fraud. “For example, we know software engineers who fall victim to digital rackets, and these are people who should know better. The problem is that we are always in a rush to do things and we do not take a step back and think things through. However, I must reiterate that the number of people who become victims of fraud is statistically insignificant, when compared to the total amount of digital transactions that take place in the country,” he said.

Alwis said when someone becomes a victim of a scam, the first thing is to prevent further loss.

“Please call your bank and deactivate your account. Then you must go to your nearest police station and lodge a complaint if you have been scammed for less than two million rupees. If the loss is between two and 20 million, you must go to the special crimes investigation bureau at the headquarters police station closest to you. If the scam is over 20 million you must go to the CID and the computer crimes investigation division will take over the case,” he said.