UNODC raises concerns over convergence of cyber fraud, gaming industry in Southeast Asia

Jenny Ortiz August 8, 2024

Cyberfraud operations in Southeast Asia are rapidly evolving, with transnational organised crime groups integrating advanced technology and expanding their reach. This development was highlighted by the United Nations Office on Drugs and Crime (UNODC) in Bangkok, where investigators and analysts from across East and Southeast Asia discussed the increasing sophistication of these criminal networks.

In its news release, UNODC said these operations are closely linked to underground banking and money laundering organisations that are becoming more prevalent throughout the region.

During the two-day closed-door meeting, UNODC officials emphasised the importance of empowering regional investigators and analysts to disrupt these criminal activities. They stressed the need for governments to recognise the severity and global reach of this threat and prioritise solutions that address the rapidly changing criminal ecosystem.

Scam centres and illicit activities

Authorities across Southeast Asia have identified hundreds of so-called “scam centres,” where thousands of people have been trafficked to work in the lucrative illicit industry. Many individuals have fallen victim to sophisticated fraud schemes orchestrated by these criminal groups, resulting in significant financial losses. In the Philippines alone, more than 400 criminal enterprises are estimated to be in operation, with many Philippine Offshore Gambling Operators (POGOs) acting as fronts for transnational organised crime groups. This has led to a recent presidential ban on the sector which the Chinese government praised.

Convergence with the gaming industry

The intersection of cyber-enabled fraud and the gaming industry has become a growing concern. Criminal networks are leveraging illegal online gambling operations to launder money and conduct fraudulent activities. This convergence complicates efforts to combat cybercrime, as the gaming industry provides a lucrative and complex front for these illicit operations. Measures to dismantle illegal online casino operations have been declared a national priority in several countries, including Cambodia, Indonesia, and Thailand.

Regional efforts and challenges

Despite these efforts, organised crime groups continue to diversify their operations into more remote parts of the region, such as autonomous territories controlled by non-state armed groups and other criminal hubs in and around the Golden Triangle. This ongoing pressure is likely to drive further innovation and expansion into more vulnerable areas. The UNODC said the need for a coordinated and comprehensive approach is critical to addressing these challenges effectively.

Increasing awareness and coordinated actions

UNODC continues to work with regional authorities to enhance awareness and develop coordinated responses to the shifting threat landscape. The organisation said there will be follow-up meetings and activities in the coming months, alongside a major threat analysis informed by the recent regional meeting. These efforts aim to improve the ability to trace and recover crypto-assets and e-money, share information and intelligence, and foster mutual understanding of the different legal and criminal justice systems to ensure swift and seamless investigative cooperation.