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Incident Overview
Breakdown of the $2.5 million financial incident
Primary Sources
US$2.5M Treasury Cyber Fraud: Funds Traced to Delaware Bank Account ...
A portion of the US$2.5 million transferred by the Treasury to scammers following a breach of the computer system at the Ministry of Finance has been traced to a bank account in the state of Delaware, United States, a senior police officer said. The account was in the name of a Delaware-based company engaged in registering online businesses and was maintained at a branch of TD Bank in that state, the official involved in the investigation said. He further stated that it is not yet clear how much of the US$2.5 million was transferred into that specific account, adding that it was not the full amount. “The money had gone into more than one account,” he said. The information came to light after the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (CBSL) contacted the United States Federal Bureau of Investigation (FBI) and requested assistance. The Criminal Investigation Department (CID), which is also involved in the investigation alongside the FIU, has been sharing available information with both the FBI and Australian authorities. The US$2.5 million in question was intended as part of a bilateral loan repayment to Australia but was diverted into a fraudulent account after Finance Ministry email systems were hacked, according to the government. The Australian Federal Police are also assisting Sri Lankan authorities in the investigation into the loss of funds. They have requested details of the email exchanges that led to the transfer of money to the fraudulent account, the official said. Meanwhile, the Committee on Public Finance (COPF) has stated in a report that the Treasury’s debt service payment process operates through a fully digitised system with no physical documentation or signatures, with authority delegated solely to relevant officials. The COPF, which convened a closed-door meeting on Tuesday (April 30) regarding the fraudulent ten transactions amounting to US$2.5 million, also noted that the Public Debt Management Office (PDMO) Back-Office Director responsible for debt service functions has the authority to approve all foreign debt service payments from the Consolidated Fund. The COPF meeting, chaired by Samagi Jana Balawegaya Parliamentarian Harsha de Silva, included testimony from Treasury Secretary Harshana Suriyapperuma, along with senior officials from the Ministry of Finance, Planning and Economic Development, the Department of External Resources, the PDMO, and the Central Bank of Sri Lanka (CBSL). The Treasury ...
CBSL, Finance Ministry working to prevent repeat of USD 2.5 million ...
The Central Bank of Sri Lanka (CBSL) and the Ministry of Finance are working closely to strengthen systems and prevent a recurrence of the incident involving the alleged fraudulent transfer of USD 2.5 million belonging to the Finance Ministry, CBSL Governor Dr. Nandalal Weerasinghe stated. Speaking at a media briefing held at the Central Bank today (13), Dr. Weerasinghe said both institutions are reviewing existing procedures and utilising their expertise to introduce safeguards against similar incidents in the future. Responding to questions from journalists, the Governor stated that the Central Bank does not bear direct responsibility for altering or verifying payment instructions issued by account holders. He explained that when a payment instruction is issued, the Central Bank’s responsibility is limited to processing the transaction once the account details and payment mechanisms are correctly verified. Dr. Weerasinghe further noted that banks do not have the authority to change customer instructions and that confirmation of receipt after a transfer is generally handled by the receiving institution. He added that statements relating to the transaction in question would have been received by the relevant institution in Australia.
Cybertheft US $ 2.5 million cyber theft, bank fraud will undermine ...
A top economist said that the US $ 2.5 million cyber theft and the bank fraud case will undermine investor confidence and creditor trust in Sri Lanka.
Statements recorded from 21 individuals Over USD 2.5 million cyber ...
The Criminal Investigations Department (CID) has so far recorded statements from 21 individuals over the USD 2.5 million cyber theft at the Finance Ministry, Public Security Minister Ananada ...
