Fake Colombo Stock Exchange Scheme Defrauds Depositors of Over Rs. 17Mn

Fraudulent company defrauded depositors of more than Rs.17 million by misusing the CSE’s name and logo 

By Indika Sri Aravinda

The Colombo Stock Exchange (CSE) has lodged a complaint with the Criminal Investigation Department (CID) after a fraudulent company defrauded depositors of more than Rs.17 million by misusing the CSE’s name and logo.

The scammers posed as a legitimate financial company registered with the CSE, promising stock market investments and financial advisory services, CSE Senior Vice President (Marketing) Niroshan Wijesundara said. The fraud was reportedly conducted through a fake mobile application and is believed to have been ongoing since November last year. “Based on information received so far, over Rs.17 million has been defrauded, but it is difficult to determine the exact number of victims,” Wijesundara stated. 

No suspects have been identified yet, and the CID has begun investigating the case.

Wijesundara urged investors to follow formal procedures when investing in the stock market and to seek official advice and investment information directly through the Colombo Stock Exchange to avoid falling prey to similar scams