Mericio Akara, the State Secretary of Social Communication, said a lack of safeguards had left Timor-Leste open to unregulated cyber crime including generation of false identifications, pornography and the hacking of personal information.
Akara also emphasised high levels of online bullying, calling for policy that protected online users rights and opinions.
"We all have the right to use the internet and express our opinions, but we also have to respect the opinions of others,” Akara told media on Thursday
Akara said a cyber crime taskforce had been formed to introduce electronic information policies to better protect online user.
The warning comes as internet usage in Timor-Leste continues to spiral.
Recent statistics by Timor Telecom say about 94 per cent of the population is now able to access cellular phone and internet services.
In 2015, just 13.4 per cent of the population was connected to the internet.