Significant progress made in probe into USD 2.5M cyber heist - Dy Minister

Significant progress has been made in investigations into the incident in which a loan installment of USD 2.5 million owed by the government to a foreign entity was diverted to an external party, the Deputy Minister of Digital Economy, Eranga Weeraratne stated. 

The incident, in which funds paid by the Treasury were allegedly misdirected into the hands of cybercriminals, has generated widespread concern in the country. 

Comprehensive investigations are currently underway, and several rounds of discussions on the matter were held at the Ministry of Finance yesterday (24).

Deputy Minister Weeraratne noted that a specialized cybersecurity protection system has been established, integrating 37 key institutions in the country to enhance digital security.

He further stated that a substantial amount of new information related to the incident has already been uncovered.

Providing details on the ongoing investigations, the Deputy Minister said:

“This transaction took place through the banking system; it was not an off-system transaction. We have made progress and now understand exactly what occurred. However, this information must remain confidential for a certain period. In the digital world, money moves swiftly, perpetrators can relocate, and evidence can be erased. Therefore, a level of confidentiality is necessary to conduct a proper investigation. We have uncovered a significant amount of new information.”

The Deputy Minister emphasized the shared responsibility of ensuring digital security, noting that employees must be properly trained in the secure use of digital systems and must verify the accuracy of financial transactions.

“What we are seeing is beyond a simple system hack. Emails were fabricated to impersonate the foreign company, resulting in deception. This occurred without any internal involvement within the institution; it was caused by a failure to identify subtle differences in communication,” he noted.

Regarding legal action, Deputy Minister of Digital Economy Eranga Weeraratne stated that the investigation must first be completed and verified, which is expected to take approximately one week.

“To prevent similar incidents in the future, a National Cyber Security Operations Center has been established to monitor major government digital systems 24 hours a day. Currently, around 12 institutions are connected to the centre, with four more in the process of joining, with the goal of integrating a total of 37 institutions. Additionally, advanced artificial intelligence-based software has been introduced to detect potential cyberattacks in advance,” Deputy Minister Weeraratne added further.