The Central Bank of Sri Lanka has once again warned the public about  increasing number of financial scams, promising high returns based on crypto investments.

The Bank insists that it has not granted licences or given authorization to people or business for activities such as cryptocurrency operations, Initial Coin Offerings (ICOs), mining, exchanges, deposit-taking or custody services, or advisory services related to cryptocurrency.

The Bank while alerting the public on alarming rise in fraudulent activities related to crypto investments said that it is crucial to be aware of the tactics used by fraudsters to safeguard one’s finances and stay vigilant.

“Fraudsters utilize various tactics, exploiting social media to advertise schemes with high returns and often boasting about their claimed earnings.

This creates a false sense of legitimacy and attracts new participants. Further, scammers use platforms like Whatsapp and Telegram to communicate with victims”, the Central Bank message said.

The announcement said that Scam advertisements often lead to professional-looking websites, aiming to disguise their fraudulent nature. Some scammers go a step further by conducting classes or awareness sessions on these fabricated platforms, providing misleading information on earning high returns or trading cryptocurrencies.

After an investment is made, scammers may swiftly seize funds or continue the deception to attract more victims. It is crucial to recognize that you may not realize you’ve fallen victim to a scam until attempting to divest from your investment. Protecting Yourself from Scams Cryptocurrencies are unregulated in Sri Lanka, not considered legal tender, and lack regulatory safeguards.

The following entities were found promoting the involvement of cryptocurrencies:Sport Chain App, Sports Chain ZS Society Sri Lanka, OnmaxDT 3, MTFE App, MTFE SL Group, MTFE Success Lanka (Pvt) Ltd and MTFE DSCC Group (Pvt) Ltd.

Source – dailynews.lk