The Securities and Exchange Commission of Sri Lanka (SEC) has issued a warning to investors regarding a fraudulent scheme operating under the name Blue Ocean Securities. The scam involves misleading Facebook advertisements, the creation of multiple WhatsApp groups, and a counterfeit mobile trading application.
Speaking at a press conference this morning, SEC Deputy Director General Tushara Jayaratne explained that the Commission’s surveillance division initially detected a series of Facebook advertisements promoting investment opportunities associated with Blue Ocean Securities.
According to Mr. Jayaratne, these advertisements encourage members of the public to join various WhatsApp groups, where purported investment recommendations are circulated. Investigations have uncovered approximately 25 to 30 such groups, each comprising between 200 and 400 members.
He further noted that, in several cases, individuals identified as company owners or chief executive officers were unaware that their photographs were being used in these advertisements. Additionally, many of the contact numbers provided by group administrators are local numbers that do not function when dialed.
The SEC also highlighted that these groups have falsely claimed Blue Ocean Securities is collaborating with the Colombo Stock Exchange (CSE) and that an application for CSE membership is currently under review. “This is totally incorrect. Neither the SEC nor the CSE has received any such application,” Mr. Jayaratne emphasized, adding that the CSE has issued a public statement to clarify the situation.
Further concerns were raised regarding a recently launched mobile application called ‘BOmate,’ which the group promotes as a trading platform. Investors are instructed to deposit funds into two specific bank accounts and are told they can trade securities via the app.
Mr. Jayaratne warned that no genuine trading occurs through this application, despite its display of CSE logos and trading icons. “From our systems, we cannot see any transactions. These are fake trades. If you trade through this app, you will not see real market transactions,” he stated, describing the operation as a significant scam.
The SEC confirmed that it is collaborating closely with the Criminal Investigation Department (CID) and the Financial Intelligence Unit (FIU) as investigations into the matter continue.
