The global digital crime network is expanding, with Southeast Asia becoming a key hub for fraud.

The Global Impact of Southeast Asia's Scam Centers and Transnational Crime Networks

Recently, the United Nations Office on Drugs and Crime (UNODC) released a report that delves into the emerging forms of transnational organized crime in Southeast Asia. The report focuses on a new digital crime ecosystem centered around online fraud, integrating underground money laundering networks with illegal online market platforms.

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency Becomes a Tool for Crime, All Parties Need to Strengthen International Cooperation

The Evolution of the Criminal Ecosystem in Southeast Asia

Southeast Asia is gradually becoming a key hub in the global criminal ecosystem. Criminal groups have established highly organized and industrialized crime networks by exploiting the region's weak governance, ease of cross-border collaboration, and technological vulnerabilities.

High liquidity and adaptability

Criminal organizations exhibit high liquidity and strong adaptability, able to quickly adjust their operational locations based on law enforcement pressure, political situations, or geopolitical conditions. They disguise themselves using physical venues such as casinos, border economic special zones, and resorts, while also "sinking" into more remote areas with weak law enforcement to evade concentrated crackdowns.

UNODC releases a report on fraud in Southeast Asia: Cryptocurrency becomes a tool for crime, and all parties need to strengthen international cooperation

systematic fraud industry chain

Fraud organizations have established a "vertically integrated criminal industry chain" that spans data collection, fraud execution, and money laundering. The upstream relies on social media platforms to obtain global victim data; the midstream implements fraud through various means; and the downstream relies on underground banks, over-the-counter transactions, and stablecoin payments to complete fund laundering and cross-border transfers.

Human Trafficking and Labor Black Market

The expansion of the scam industry is accompanied by systemic human trafficking and forced labor. Personnel from scam parks come from multiple countries around the world, often lured into the country through false recruitment, suffering from violent control and even being sold multiple times. This "scam economy + modern slavery" model has become a human support method that runs throughout the entire industry chain.

Digitalization and Technological Evolution

Fraud groups continuously upgrade their counter-detection tactics, constructing a criminal ecosystem of "technical independence + information black box". They generally deploy infrastructures such as satellite communications, private power grids, and intranet systems, and extensively use technologies like encrypted communication, AI-generated content, and automated phishing scripts. Some organizations have also launched "scam-as-a-service" platforms to provide technical support to other gangs.

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency Becomes a Tool for Crime, All Parties Need to Strengthen International Cooperation

Global Expansion Trends

Southeast Asian crime syndicates have expanded globally, establishing new operational bases in other parts of Asia, Africa, South America, the Middle East, and even Europe.

Asia

  • Taiwan, China: Becoming a center for scam technology research and development
  • Hong Kong and Macau, China: Underground Money House Hub
  • Japan: Surge in losses from online fraud
  • South Korea: Increase in cryptocurrency scams and money laundering activities
  • India, Pakistan, and Bangladesh: Becoming sources of labor for scams

Africa

  • Nigeria, Zambia, Angola: Large scam groups have emerged, involving cryptocurrency fraud and cybercrime.

South America

  • Brazil: Criminal groups use unregulated platforms to launder money
  • Peru: Break up a transnational crime gang
  • Mexico: Drug cartels launder money through underground banks in Asia

Middle East

  • Dubai: Becoming a global money laundering center
  • Turkey: Some scam leaders obtain passports through investment citizenship programs.

Europe

  • UK: Real estate becomes a tool for money laundering
  • Georgia: A "Little Southeast Asia" scam center has emerged.

UNODC releases a report on fraud in Southeast Asia: cryptocurrencies become tools for crime, and all parties need to strengthen international cooperation

Emerging Illegal Online Markets and Money Laundering Services

Telegram dark web

Criminals use the Telegram platform to establish illegal online markets, offering services such as stolen data, hacking tools, and malware. These platforms are often linked to cryptocurrency exchanges controlled by the same organization.

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency Becomes a Tool for Crime, All Parties Need to Strengthen International Cooperation

Fully Light Guarantee

As a prototype platform for early illegal markets in Southeast Asia, it attracted over 350,000 users. The platform served as a trading market for human trafficking, intermediary recruitment, informal cross-border money laundering, and "black industry" technical support.

UNODC releases report on fraud in Southeast Asia: Cryptocurrency becomes a tool for crime, and all parties need to strengthen international cooperation

Huione Guarantee

has become one of the largest illegal online trading markets in the world in terms of users and trading volume. The platform has processed hundreds of billions of dollars in cryptocurrency transactions, becoming a one-stop service center for criminals to obtain various types of criminal resources.

UNODC Releases Report on Fraud Situations in Southeast Asia: Cryptocurrencies Become Tools for Crime, All Parties Need to Strengthen International Cooperation

Transnational Criminal Networks and Global Law Enforcement Challenges

Some transnational criminal organizations use complex business structures to conceal illegal activities, particularly in the areas of money laundering and online fraud. They significantly increase the difficulty of transnational financial regulation and criminal investigation tracing through multiple nationalities, cryptocurrency operations, and intricate cross-border financial networks.

To address these challenges, it is necessary to:

  1. Promote the global unification of anti-money laundering standards for crypto assets.
  2. Strengthen cross-border asset freezing and criminal tracing collaboration
  3. Establish multilateral mechanisms to sanction high-risk platforms
  4. Strengthen collaboration between law enforcement agencies, on-chain monitoring companies, and exchanges.

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency as a Tool for Crime, Parties Need to Strengthen International Cooperation

Conclusion and Recommendations

  1. Raise awareness of fraud risks among the government and the public
  2. Strengthen the regulatory framework, especially for virtual assets and high-risk industries.
  3. Enhance the technical and business capabilities of law enforcement agencies
  4. Promote coordination and cooperation among government departments
  5. Promote pragmatic and effective regional and international cooperation

Only through comprehensive and multi-level international cooperation can we effectively address the increasingly complex issues of global cybercrime and safeguard the security of the global financial system and social stability.

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency Becomes a Tool for Crime, All Parties Need to Strengthen International Cooperation

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency as a Tool for Crime, Parties Need to Strengthen International Cooperation

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency Becomes Tool for Crime, Parties Need to Enhance International Cooperation

UNODC Releases Report on Fraud in Southeast Asia: Cryptocurrency as a Tool for Crime, All Parties Need to Strengthen International Cooperation

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Share
Comment
0/400
WenMoonvip
· 3h ago
Transnational fraud is rampant.
View OriginalReply0
FloorPriceWatchervip
· 4h ago
The law does not punish the masses, making it difficult to be effective.
View OriginalReply0
OptionWhisperervip
· 07-15 05:43
Strict investigation is imperative.
View OriginalReply0
FloorSweepervip
· 07-15 05:39
the unpredictable dark web
View OriginalReply0
ForkThisDAOvip
· 07-15 05:32
Cross-border law enforcement is too difficult.
View OriginalReply0
GasFeeVictimvip
· 07-15 05:29
Criminal organizations are pervasive.
View OriginalReply0
GasFeeCryingvip
· 07-15 05:18
Fraud is rampant and needs vigilance.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)