Concern sparks over online frauds involving Chinese in Sri Lanka

Concerns are growing over Chinese national’s involvement with cybercrimes, including theft of personal information and e-commerce scams, with the latest arrest of nearly 40 Chinese nationals in Sri Lanka.

Every year, millions of people from different countries become victims of online fraud, which is a type of fraud that occurs in cyberspace.

Last week, the Sri Lanka Police arrested at least 39 Chinese nationals in connection with online financial fraud.

According to the police, Chinese nationals have defrauded millions of money over several months through the internet from the accounts of people in different countries. The group had been staying in a tourist resort in the Kaluamodara area in Aluthgama and Police said they were arrested based on complaints received through several embassies.

While the arrested Chinese nationals were taken to the Aluthgama police, several smartphones and cash in their possession were also taken into custody by police.  . Among the arrested Chinese nationals are 33 men, five women and a child. They were ordered to be remanded until April 6 by the Kalutara Magistrate’s.

It was reported that they had reportedly been staying in Sri Lanka for six months. Some of them during questioning have said they were kept against their will and forced to engage in online financial crimes.

This arrest was made a month after the warning by the Indian intelligence agencies, which said that Chinese syndicates and threat actors are committing cybercrimes in neighbouring countries, including theft of personal information, cross-border gambling, e-commerce scams, romance scams, and APT.

According to the sources of the agencies, the recent tightening of laws in China against gambling, money laundering, pornography, and other cyber-related issues has led to a significant increase in such crimes outside the country, especially in its neighbouring Myanmar, Cambodia, the Philippines, Malaysia, Singapore, and Thailand.

The arrest in Sri Lanka was the second incident within a week of Chinese nationals being arrested from another country for online fraud.

Nepal police on Tuesday nabbed nine China nationals for their alleged involvement in online fraud.

Police also arrested 10 Nepalis who were allegedly helping them in the business, The Kathmandu Post reported. Police said this time they have 'strong evidence' to file an online fraud case. "Earlier, the police would be short of evidence as they would be found to be running a call centre or doing some other legitimate activities," said Senior Superintendent of Police Manoj KC, who is also the in-charge at the Valley Crime Investigation Office, Minbhawan, adding, "But this time we have enough evidence."

Last month, Sri Lanka Tourism Ministry hosted a grand welcome for the first batch of Chinese Tourists for 2023 which the destination received after a lapse of three years. The group was the first Chinese tourist arrival after the COVID 19 Pandemic, which created a major setback in the Chinese tourist arrivals.

Online fraud involves the use of online services and software to take advantage of victims. It covers different types of cybercrime activity such as identity theft, phishing, and different hacking activities.

Recently, the Ministry of Public Security from China has released a list of the top five sources of online fraud. Brushing, False Investment, Money Management, Dodgy loan scheme and Impersonation of customer service are among those sources.

Earlier, law enforcement authorities warned the public to be more vigilant over alleged fraud carried out in Sri Lanka through the Internet by foreigners who are in Sri Lanka on tourist visas.

According to the police, cybercrime is the latest challenge faced by Sri Lanka Police, given the advancement of technology over the years, challenging conventional crime-solving tools. To battle online crime Sri Lanka Police established the Computer Crime Investigation Division directly under the supervision of the Criminal Investigations Department. In order to solve cybercrimes, the Computer Crime Investigation Division maintains direct links with all accepted Social Media Platforms, and networks for their crime-solving processes.

Before the COVID 19 Pandemic, a number of online fraud incidents involving Chinese nationals were reported in many parts of the country as thousands of Chinese were engaged in work in China-funded development projects across the island. Many more arrive on tourist visas and work in the hospitality industry.

In October last year, Sri Lanka’s Criminal Investigation Department arrested two Chinese and three Sri Lankans in connection with the running of an alleged cryptocurrency scam that police believe defrauded some Rs. 14 billion from more than 8,000 people.

The alleged Ponzi scheme, known as “Sports Chain” has been operating in the country since 2020. The CID arrested the Chinese — a male and a female — at the Bandaranaike International Airport while they were attempting to leave the country.

The suspects had created a special application for the scheme which showed investors almost five times the profit of their investments in cryptocurrency, but they were unable to enjoy the profits.

Under Sri Lankan law, running pyramid schemes can result in imprisonment between three to five years. Offenders also have to pay a fine of 2 million Sri Lankan rupees ($6,222) or twice the amount received from the participants in the scheme, whichever is higher.