Cybercrime syndicates stole around $37 billion in 2023: Report
What's the story
Cybercrime syndicates are said to have raked in an estimated $37 billion in 2023, as per a recent report by the United Nations.
The report notes that these illegal activities are on the rise across Southeast Asia, even as law enforcement has stepped up efforts.
"The transnational organized crime threat landscape in Southeast Asia is evolving faster than at any previous point in history," the UN Office on Drugs and Crime said.
New epicenter
Mekong region becomes hotbed for cybercrimes
The UN report highlights a spike in illegal cyber activities since the pandemic, especially in the Mekong region.
Countries like Myanmar, Cambodia, and Laos have become a hotbed for crime syndicates.
These groups are involved in a range of fraudulent activities, including romance-investment schemes, cryptocurrency scams, money laundering, and unauthorized gambling operations.
Tech integration
Cybercriminals adopt advanced technologies for operations
The report also highlights that these cybercrime syndicates are adopting new service-based business models as well as advanced technologies.
They are integrating malware, deepfakes, and generative AI into their operations.
They are also setting up new underground markets and cryptocurrency solutions, to facilitate their money laundering activities.
Economic impact
Southeast Asia's illicit economy fuels money laundering innovation
The UN says that the enormous proceeds from the region's booming illicit economy, are fueling innovation in money laundering activities.
"The sheer scale of proceeds being generated within the region's booming illicit economy has required the professionalization and innovation of money laundering activities, and transnational criminal groups in Southeast Asia have emerged as global market leaders," the report states.
Exploitation
Syndicates exploit vulnerable individuals, intensify operations
Reportedly, hundreds of thousands of people have been trafficked into these countries, and are being forced to work in scam centers.
Properties such as hotels, casinos, and special economic zones have become hotspots for this booming illicit economy.
This has worsened the pre-existing governance challenges in many border areas of the region.
Financial fallout
Cyber frauds cause significant financial losses in Asia
The surge of cyber frauds has resulted in massive financial losses, ranging between $18 billion and $37 billion from scams targeting victims in the East and Southeast Asia in 2023.
The report also cited Singapore's $2.3 billion money laundering case, the country's first criminal action against finance professionals and one of its largest money laundering investigations ever.