- The UNODC urges Southeast Asia to ban unlicensed virtual asset providers to combat cyber fraud and organized crime.
- Southeast Asia, especially along the Mekong River over $18-37 billion in losses last year.
The United Nations Office on Drugs and Crime (UNODC) has urged Southeast Asian countries to take strong measures against unlicensed virtual asset service providers (VASPs) in a new report.
According to a 142-page page released on October 8, the involvement of some VASPs in facilitating illegal transactions for cybercrime groups and high-risk gambling sites. UNODC stresses the need to criminalize unregulated operations of these businesses to curb growing organized crime in the region.
Significant Financial Losses from Cyber Scams
According to the report, fraudsters have adopted advanced technologies, including artificial intelligence (AI), to diversify their tactics. These criminals engage in scams such as identity theft, fake recruitment, and phishing attacks. Also, they have used AI to create highly convincing fake identities and real-time interactions in multiple languages.
Further, the UNODC identifies Southeast Asia, particularly countries along the Mekong River, as a major hub for cyber scam syndicates, with estimated losses between $18 billion and $37 billion in the past year. These syndicates operate scam centers, often under the guise of legitimate businesses, and exploit forced labor for their operations.
One prominent VASP in the Mekong region, heavily reliant on the USDT stablecoin, has processed $49 billion to $64 billion in crypto transactions between 2021 and 2024.
The report also highlights the rising role of AI in criminal operations, calling it a worrying trend. It recommends increased supervision of casinos, online fraud operations, and better training for authorities to address modern cybercrime and money laundering facilitated by cryptocurrencies.
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