Sri Lanka Police Sound Alarm Over AI-Generated Fake Payment Receipt Fraud Targeting Sellers

Fraudsters Using Artificial Intelligence to Deceive Sellers and Service Providers

The Sri Lanka Police have issued an urgent public warning, alerting sellers and service providers across the country to a growing wave of scams involving fraudulent payment receipts generated using artificial intelligence technology.

Authorities say criminals are exploiting increasingly sophisticated AI tools to produce highly convincing fake payment confirmations, which are then presented to unsuspecting sellers as proof of legitimate transactions. Victims are being deceived into releasing goods or rendering services before realising that no actual payment was ever made.

How the Scam Works

According to police, the typical scheme unfolds when a buyer contacts a seller — often through social media marketplaces or online platforms — and places an order. Once the seller requests payment, the fraudster submits a digitally fabricated receipt that closely mimics genuine bank transfer confirmations or mobile payment notifications.

The forged documents are said to be so realistic that they can easily deceive individuals who do not take steps to independently verify transactions through their bank or payment provider.

Who Is at Risk

Police have highlighted that the following groups are particularly vulnerable to this type of fraud:

• Small business owners and individual sellers operating through social media platforms
• Online retailers who rely on screenshot-based payment confirmations
• Service providers who dispatch goods or commence work before confirming receipt of funds
• Market vendors experimenting with digital payment methods

Police Advice to the Public

The Sri Lanka Police urge all sellers and service providers to verify payments directly through their bank account or official payment application before releasing any goods or providing any service.

Authorities strongly recommend that sellers avoid accepting screenshots or forwarded images as sole proof of payment. Instead, individuals should log in to their own banking applications or contact their financial institution directly to confirm that funds have been received and cleared.

Police have also encouraged members of the public who believe they have been targeted by such a scam to report the incident to their nearest police station without delay, as prompt reporting can assist investigations and help prevent further victims from being defrauded.

A Broader Warning on AI-Enabled Crime

This latest advisory reflects a wider concern among law enforcement agencies about the misuse of artificial intelligence in criminal activity. As AI tools become more accessible and capable, the potential for their exploitation in financial fraud continues to rise, placing greater responsibility on both individuals and businesses to remain vigilant.

The Sri Lanka Police continue to monitor the situation and have pledged to take firm action against those found to be engaging in such fraudulent practices.