UN warns of rising cybercrime and illegal gambling in Southeast Asia

The United Nations Office on Drugs and Crime (UNODC) has issued a stark warning about the rapid rise in cybercrime and illegal online gambling in Southeast Asia.

According to the UNODC, scams targeting victims in East and Southeast Asia led to financial losses estimated between $18bn and $37bn in 2023, with much of the activity tied to organised crime groups in the region.

The report highlights the increasing use of online platforms by criminal networks for illicit operations, particularly in countries within the Mekong region, which has become “a key testing ground” for these enterprises.

UNODC’s findings draw on criminal indictments, intelligence analyses, court documents, and consultations with regional and international law enforcement.

The agency also mapped and analysed data from thousands of Telegram underground marketplaces and channels linked to Asian organised crime networks.

Hubs of illicit activity

The report emphasises that rapid advancements in physical, technological, and digital infrastructure have enabled organised crime to thrive.

Organised crime groups are increasingly using casinos, hotels, Special Economic Zones (SEZs), and other property developments as hubs for the growing illicit economy, the agency said.

These venues often serve as bases for transnational criminal groups involved in illegal activities such as drug production, human trafficking for forced labor and prostitution, and money laundering.

“Underregulated casinos, junkets, and illegal online gambling platforms are critical infrastructure for transnational organised crime groups operating in and beyond the region,” the report states.

Enforcement challenges

According to the UNODC, authorities in East and Southeast Asia face significant challenges in enforcing laws to curb illegal online gambling.

The report notes that the spread of this industry has been difficult to contain, leading to a multi-billion-dollar shadow economy operating in “grey,” “black,” or “pre-regulated” markets.

Criminal networks have developed sophisticated methods to process and launder vast amounts of illegal transactions, driving demand for “laundering-as-a-service” providers.

The report outlines how illegal online gambling platforms and unauthorised virtual asset service providers have been exploited by major organised crime groups to launder billions in criminal proceeds.

“Organised crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing governments’ capacity to contain it,” said Masood Karimipour (pictured), UNODC regional representative for Southeast Asia and the Pacific.

AI-driven crimes on the rise

The report also points to a sharp rise in AI-driven crimes, particularly involving deepfakes.

In the first half of 2024, mentions of deepfake-related content linked to criminal groups in Southeast Asia surged by more than 600%.

“The integration of generative artificial intelligence by transnational criminal groups involved in cyber-enabled fraud is a complex and alarming trend,” said UNODC regional analyst John Wojcik.

He noted that AI has expanded the reach and efficiency of cyber fraud, lowering the barriers for less technically skilled criminal networks to engage in high-level cybercrime.

The UNODC urged governments to act swiftly to combat the growing threat of cyber-enabled fraud and illegal online gambling in the region.

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