A new report from the United Nations Office on Drugs and Crime (UNODC), entitled the 'Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation in Southeast Asia: A Shifting Threat Landscape’ report - was released this week.
It shines a spotlight on the sharp rise of Southeast Asia as a scam hub, estimated to have generated between $18 billion and $37 billion dollars in 2023 alone.
It explores the rapid evolution of transnational organized crime in Southeast Asia, brought to life by this image (below) that contrasts satellite imagery taken from June 2019 against June 2023, depicting one compound in Myanmar and showing the rapid evolution of development and infrastructure.
The report emphasizes the urgent need for coordinated efforts to address the challenges facing the region, including:
- A need for stronger policy frameworks,
- Enhanced law enforcement capabilities, and
- International collaboration to combat the convergence of cyber-enabled fraud and organized crime.
The KK Park compound in Kayin State, Myanmar, featured in the imagery above, is just one example of how out of control the situation is in parts of Southeast Asian region.
UNDOC says ‘The transnational organized crime threat landscape in Southeast Asia is evolving faster than in any previous point in history. This change has been marked by growth in the production and trafficking of synthetic drugs and cyber-enabled fraud, driven by highly sophisticated syndicates and complex networks of money launderers, human traffickers, and a growing number of other service providers and facilitators.
Despite mounting enforcement efforts, cyber-enabled fraud has continued to intensify, resulting in estimated financial losses between US $18 billion and $37 billion from scams targeting victims in East and Southeast Asia in 2023. A predominant proportion of these losses were attributed to scams committed by organized crime groups in Southeast Asia.’
Here’s a summary of the report’s key findings:
1. Expansion of Cyber-Enabled Fraud:The region has seen a significant increase in cyber-enabled fraud, contributing to estimated losses of $18-$37 billion in 2023. Organized crime groups have adapted new technologies like AI and cryptocurrency, expanding their operations.
2. Underground Banking and Money Laundering:The report highlights the professionalization of money laundering services, often involving high-risk virtual asset service providers (VASPs) and unregulated online gambling platforms. These channels facilitate the movement of illicit funds, complicating enforcement efforts.
3. Regional Criminal Hubs:Casinos, special economic zones (SEZs), and other development projects have become hotspots for organized crime, enabling activities such as illegal gambling, human trafficking, and synthetic drug trade. Key areas include the Golden Triangle and border regions where regulations are lax.
4. Technological Integration:Criminal groups have leveraged blockchain, AI, and other advanced technologies to innovate and scale their operations, including the use of AI for social engineering, deepfake fraud, and automated cyberattacks. This has lowered barriers for new criminal entrants and increased the sophistication of fraud tactics.
5. Policy and Enforcement Challenges:Despite regional efforts to regulate online gambling and curb illegal activities, enforcement has lagged due to technological advancements and the ability of criminal networks to exploit regulatory gaps. Cooperation between regional governments and international partners is crucial for effective action.
You can download and read the full UNODC report here: https://www.unodc.org/roseap/en/2024/10/cyberfraud-industry-expands-southeast-asia/story.html
Keeping Businesses Safe and Secure
Prevention is always better than a cure, and one of the best defences is to encourage businesses to proactively boost their company’s cyber resilience levels to avoid threats landing in inboxes in the first place. The fact that a staggering 94% of malware attacks are delivered by email, makes email an extremely important vector for businesses to fortify.
No one vendor can stop all email threats, so it’s crucial to remind customers that if they are using Microsoft 365 or Google Workspace, they should also have a third-party email security specialist in place to mitigate their risk. For example, using a specialist third-party cloud email solution like MailGuard.
MailGuard provides a range of solutions to keep businesses safe, from email filtering to email continuity and archiving solutions. Speak to your customers today to ensure they’re prepared and get in touch with our team to discuss fortifying your customer’s cyber resilience.
Talk to us
MailGuard's partner blog is a forum to share information; we want it to be a dialogue. Reach out to us and tell us what your customers need so we can serve you better. You can connect with us on social media or call us and speak to one of our consultants.
Australian partners, please call us on 1300 30 65 10
US partners call 1888 848 2822
UK partners call 0 800 404 8993
We’re on Facebook, Twitter and LinkedIn.
Keep Informed with Weekly Updates
