Sri Lanka’s government disclosed another anomalous financial transaction on Wednesday, just days after hackers stole $2.5 million from the country’s finance ministry, TechCrunch reported. The successive security incidents expose serious vulnerabilities in the nation’s government cyber defense infrastructure.

The specific amount of the newly disclosed anomalous transaction has not been made public, but a finance ministry spokesperson confirmed that cybersecurity experts are cooperating to trace the flow of funds. The earlier $2.5 million theft is believed to have been a sophisticated cyberattack targeting Sri Lanka’s fiscal systems, with hackers exploiting security gaps during a system upgrade.

Sri Lanka has been working to restore economic stability in recent years. In 2022, the country experienced its worst economic crisis since independence, with depleted foreign exchange reserves causing shortages of essential goods. While the nation has gradually recovered under an International Monetary Fund (IMF) assistance program, investment in fiscal system security has been deemed insufficient.

Cybersecurity analysts note that cyberattacks targeting government agencies in developing nations are on the rise. Attackers typically exploit gaps in these countries’ cybersecurity infrastructure investments, using spear-phishing attacks, system vulnerability exploits, and other methods to gain access. Successful breaches not only cause direct financial losses but can also undermine international investor confidence in local governance capabilities.

The Sri Lankan government has announced a comprehensive review of its fiscal system security architecture and plans to engage international cybersecurity firms to assist with upgrading protective measures. Opposition parties are calling for the establishment of an independent investigative committee to determine accountability for the security breaches.

Source: TechCrunch - Sri Lanka missing payment