Sri Lankan Regulator Warns Against Fraudulent Trading Apps 'Blue Ocean Securities' and 'BOMate'

The Securities and Exchange Commission of Sri Lanka (SEC) recently issued a warning to investors regarding two fraudulent trading platforms—"Blue Ocean Securities" and "BOMate."

The Commission stated that the fraudulent investment app "Blue Ocean Securities" has been posting misleading advertisements on Facebook and creating multiple WhatsApp groups.

At a press conference held on the morning of December 17, Tushara Jayaratne, SEC Deputy Director General, stated that the Commission first discovered a series of advertisements promoting investment opportunities related to Blue Ocean Securities on Facebook. These ads enticed people to join WhatsApp groups, claiming that so-called investment recommendations would be shared.

Following an investigation, the SEC discovered approximately 25 to 30 groups like this, each containing between 200 and 400 members.

Jayaratne noted that in some instances, individuals claimed by Blue Ocean Securities as "company owners" or "chief executives" may have been unaware that their photos were being used in advertisements. Furthermore, many numbers provided by group administrators were unreachable.

Within these groups, Blue Ocean Securities claimed to have a partnership with the Colombo Stock Exchange (CSE), stating it had applied for CSE membership and was awaiting review.

Jayaratne clarified that neither the Sri Lanka SEC nor the Colombo Stock Exchange had received such an application, and the CSE had issued a public warning regarding this matter.

Meanwhile, an application named "BOMate," purportedly a trading platform, also drew the attention of the SEC. This app also featured the CSE's name and logo. Investors are instructed to deposit funds into two bank accounts and are told they can trade securities through BOMate.

Jayaratne emphasized that the app does not conduct genuine trading activities, as no transactions can be seen in the SEC's systems. He described it as a major scam operation: "These are fake trades. If you trade through this app, you will not see real market transactions."

BrokersView reminds you

To avoid falling into investment scams, BrokersView advises users to verify the regulatory status of financial brokers and remain vigilant against unlicensed & unregulated platforms.