UNODC Alarms on Growing Cyber Fraud in Southeast Asia Linked to Gaming Industry

In a recent meeting in Bangkok, the United Nations Office on Drugs and Crime (UNODC) raised alarms about the convergence of industrial-scale cyber fraud operations and the gaming industry across Southeast Asia. The organization claims that transnational organized crime groups are deeply involved in sophisticated underground banking, money laundering, and illegal online gambling operations that have rapidly expanded throughout the region.

"Organized crime groups are converging where they see vulnerabilities, and empowering the region’s investigators and analysts is central to UNODC’s strategy to disrupt these bad actors moving forward,” stated Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific.

Authorities across Southeast Asia have identified hundreds of ‘scam centres' where thousands of people have been trafficked into this lucrative illicit industry. These criminal enterprises have orchestrated fraud schemes resulting in billions of dollars lost, making the region a prime base of operations for these growing criminal groups.

In the Philippines alone, it is estimated that more than 400 of these criminal enterprises are operating. Many Philippine offshore online gambling operators (POGOs) have been found to serve as fronts for transnational organized crime groups. This has led to a recent sector ban under a Presidential order, with details still emerging on the scope of the ban.

Similar measures have been implemented in other parts of the region, including Cambodia, Indonesia, and Thailand, where dismantling cyber-enabled fraud and illegal online casino operations has become a national priority. However, as law enforcement and regulators intensify their efforts, organized crime groups continue to diversify their operations into more remote areas, such as autonomous territories controlled by non-state armed groups and other criminal hubs.

"Cyber-enabled fraud perpetrated by powerful transnational criminal networks has evolved into a thriving multi-billion-dollar illicit industry that now exceeds the GDP of several countries in Southeast Asia combined," said John Wojcik, UNODC Regional Analyst.

The meeting of regional investigators and analysts has resulted in the formation of an informal network to enhance cooperation and share operational outcomes and intelligence. UNODC is also working closely with regional authorities to bolster their efforts, including the establishment of an emergency response network.

By fLEXI tEAM