• UNODC estimates that scams in East and Southeast Asia caused financial losses between $18 billion and $37 billion in 2023, largely due to organized crime groups.
  • The report highlights the rise of AI-generated deepfakes used by criminals to enhance fraud capabilities.

A new report from the United Nations Office on Drugs and Crime (UNODC) reveals that organized crime groups in Southeast Asia are increasingly using cryptocurrencies for large-scale and hard-to-detect activities such as fraud, money laundering, underground banking, and online scams. The report estimates financial losses from scams in East and Southeast Asia between $18 billion and $37 billion in 2023, largely tied to organized criminal networks.

The report highlights the role of emerging technologies, including cryptocurrencies and generative AI, in these illegal operations. Slava Demchuk, UNODC Consultant and CEO of AMLBot, noted that crypto transactions can be traced using blockchain analytics tools, identifying risks associated with crypto addresses linked to illegal services. He emphasized that unregulated crypto services provide opportunities for criminals, as they lack KYC and crypto screening processes, allowing easy exchange between digital assets.

Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific, expressed concern, stating that:

"organized crime groups are exploiting vulnerabilities, and the evolving situation is outpacing governments’ capacity to contain it.”

The report also highlights the increasing use of underregulated online gambling platforms and unauthorized virtual asset service providers, enabling organized crime groups to launder funds across borders with minimal oversight. This expands their ability to integrate illicit money into the global financial system.

UNODC additionally reported a surge in AI-generated deepfakes used by criminals in the region, enhancing their fraud capabilities. John Wojcik, UNODC Regional Analyst, noted that these advancements have broadened the scope of cyber-enabled crime.

The UN warns that organized crime groups are also involved in human trafficking, forcing victims into scam operations through false job ads, leading to coerced participation in cyber fraud and money laundering schemes.

Edited by Harshajit Sarmah

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