The UNODC estimates that scam networks will cause $114 billion in damages by 2025, highlighting a rise in organized crime in East and Southeast Asia.
The United Nations Office on Drugs and Crime (UNODC) has projected that scam operations in East and Southeast Asia, Australia, and New Zealand will cause damages ranging from $88.3 billion to $114.1 billion in 2025. This figure represents a significant increase from the estimated $18 billion to $37 billion in losses recorded in 2023.
China is anticipated to experience the highest losses, estimated at $5.1 billion, followed by South Korea at $3.5 billion and Taiwan at $2.8 billion. The report emphasizes that these figures are approximations, factoring in both reported losses and unreported victimization.
Criminal Networks Evolving
UNODC describes a notable shift in the organization of criminal operations, with fragmented groups merging into a cohesive transnational network that shares resources for various illegal activities, including fraud and human trafficking. Dolphin Schantz, the regional representative for Southeast Asia and the Pacific, likened this development to a corporate franchise model with specialized divisions for different criminal operations.
“Imagine specialized departments for money laundering, human trafficking, illegal migrant smuggling, and data collection, all connected to one interlinked service network,” Schantz noted.
Inshik Sim, UNODC's lead analyst, pointed out that the scale of this criminal economy exceeds current law enforcement capabilities.
Cryptocurrency as a Tool for Crime
The report identifies cryptocurrencies as a vital component of the infrastructure supporting these scams and money laundering activities. Criminal organizations are increasingly utilizing digital assets, particularly USDT on the TRON network, to facilitate rapid and low-cost cross-border transactions while evading banking regulations.
UNODC advocates for enhanced training for law enforcement to effectively track and seize cryptocurrency assets, arguing that merely disrupting criminal operations is insufficient if their financial gains remain intact.
Advanced Technologies Empower Scams
According to UNODC, criminal groups are leveraging generative AI, deepfakes, and satellite communications to enhance their operations. These technologies enable them to execute complex fraud schemes more easily and reach remote areas.
For instance, the use of generative AI has lowered barriers for executing sophisticated scams, allowing small groups to create convincing phishing content and deepfake videos.
Additionally, the report highlights a 42% increase in the use of legitimate advertising networks to disseminate malware and phishing pages in 2025.
Global Recruitment for Scam Operations
Scam operations are reportedly recruiting individuals from over 80 countries, with hiring efforts extending beyond Asia into the Middle East and Africa. Job postings linked to these scams have indicated a demand for multilingual candidates, suggesting a broader recruitment strategy that raises concerns about potential human trafficking.
Despite efforts to disrupt these networks, UNODC warns that simply targeting specific locations is ineffective, as criminal organizations adapt by shifting jurisdictions and restructuring their operations.
In June, U.S. authorities seized a cloud account used by the Huione Group for transferring and laundering funds derived from cryptocurrency scams, further illustrating the ongoing challenges in combating these networks.
