A report claims organised cybercrime groups from Southeast Asia are increasingly relocating operations to Sri Lanka….reports Asian Lite News Desk
Sri Lanka is increasingly being used as a base for international telecom fraud and so-called “pig-butchering” investment scams, with organised cybercrime syndicates shifting operations to the island nation amid economic challenges and regulatory loopholes, according to a media report.
A report by Ceylonnews24 said criminal networks previously concentrated in Southeast Asian countries such as Myanmar, Cambodia and Laos are increasingly decentralising their operations and establishing hubs in Sri Lanka, attracted by what investigators describe as relatively relaxed scrutiny of foreign investments and cash inflows.
Sri Lankan authorities have stepped up enforcement efforts in recent months, conducting a series of raids that have uncovered large-scale scam centres allegedly operated by foreign nationals.
Since mid-2024, operations carried out by the Sri Lanka Police and the Criminal Investigation Department (CID) have resulted in hundreds of arrests and the seizure of equipment linked to cyber fraud activities.
Major raids in Kandy, Panadura and Negombo targeted luxury hotels and guest houses suspected of being used as operational bases for scam networks.
Investigators recovered hundreds of computers, mobile phones and SIM-box devices capable of running large numbers of SIM cards simultaneously, enabling operators to make thousands of fraudulent calls and send mass scam messages.
One of the largest crackdowns took place in April this year, when authorities arrested 150 individuals at a luxury hotel in Ambakandavila. Those detained included 133 Chinese nationals, 13 Vietnamese nationals and one Malaysian citizen, according to the report.
Authorities believe many of the centres are linked to transnational criminal syndicates operating across Asia.
The report said recruitment for such operations often begins through misleading job advertisements posted on social media platforms. Prospective workers are promised positions in online marketing, customer support or data entry before being brought to Sri Lanka.
In many cases, investigators allege, recruits have their passports confiscated upon arrival and are forced to participate in online fraud schemes.
Among the most common scams being run from these centres is the so-called “pig-butchering” scheme, a form of investment fraud in which scammers cultivate long-term online relationships with victims, often posing as romantic partners or trusted friends.
After gaining a victim’s confidence, fraudsters persuade them to invest money through fake cryptocurrency or investment platforms, ultimately disappearing with the funds.
Investigators have also linked the networks to phishing attacks, social media account takeovers and identity fraud.
According to the report, scammers frequently use virtual private networks (VPNs) to conceal their locations and impersonate individuals from other countries. Hacked WhatsApp and social media accounts are then used to contact victims and solicit money transfers through fraudulent links or fake investment opportunities.
Victims are often directed to transfer funds into local bank accounts controlled by the criminal networks before the money is moved through a series of transactions.
The report alleged that many of the operations are run by Chinese and Nigerian nationals and maintain links to larger criminal syndicates based in Myanmar and Cambodia, countries that have become notorious in recent years for hosting cybercrime compounds and online fraud operations.
The findings come amid growing international concern over the rapid expansion of organised cybercrime networks across Asia, with authorities in several countries warning that criminal groups are increasingly relocating operations to jurisdictions perceived as offering weaker oversight or enforcement.
Sri Lankan authorities have not yet released a comprehensive assessment of the scale of the problem, but recent raids suggest the country is emerging as a significant new front in the global fight against telecom fraud and online investment scams.
