Two individuals have been taken into custody in connection with an alleged pyramid financial scheme operating in the Negombo area, authorities have confirmed.
The arrests were made following investigations into what is believed to be an illegal money circulation scheme that had been luring members of the public with promises of high financial returns.
Pyramid Schemes: A Growing Concern
Pyramid schemes, which are illegal under Sri Lankan law, typically operate by recruiting participants who invest money with the expectation of earning returns generated primarily through the enrolment of new members rather than through legitimate business activity. Such schemes inevitably collapse, leaving the majority of participants at a significant financial loss.
Authorities have in recent years stepped up efforts to crack down on fraudulent investment operations of this nature, which continue to target vulnerable members of the public across the island.
Investigation Ongoing
The two suspects arrested in Negombo are currently being held as investigations continue. Police are expected to look into the full extent of the scheme, including the number of victims affected and the total amount of money allegedly collected from the public.
Members of the public are urged to exercise extreme caution when approached with investment opportunities that promise unusually high returns, and to report any suspicious financial schemes to the relevant authorities immediately.
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finally caught. how many victims lost money though