A new one report of the United Nations has raised alarm over the sophistication of cryptocurrency-related crimes in Southeast Asia, which are estimated to have caused financial losses ranging from $18 billion to $37 billion by 2023.
The United Nations Office on Drugs and Crime (UNODC) says criminal organizations are increasingly using digital currencies and emerging technologies to commit large-scale fraud, money laundering and online scams, which are becoming increasingly difficult to detect.
“Organized crime groups are exploiting vulnerabilities, and the situation is evolving at a pace that exceeds the capacity of governments to contain it,” warned Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific.
The report illustrates how criminals access weakly regulated online gambling platforms and unauthorized virtual asset services to move illicit funds across borders under limited supervision.
According to the report, generative AI will be increasingly used by criminal groups in Southeast Asia to create convincing deepfakes in the first half of 2024, increasing their ability to commit fraud.
“These developments have increased the scope and efficiency of cyber fraud and cybercrime,” said John Wojcik, UNODC regional analyst.
The UN report also notes that illegal online casino operators have expanded their activities into cyber fraud and crypto-based money laundering services, and also often conduct their activities in casino complexes, special economic zones and border areas to avoid detection of illegal activities.
