New York, Thursday, October 10, 2024-A new report by the UN(United Nations) Office on Drugs and Crime (UNODC) reveals that organized crime groups in Southeast Asia are increasingly utilizing cryptocurrency for large-scale, hard-to-detect crimes, including fraud, money laundering, and online scams.
Financial losses from these criminal activities are estimated to range between $18 billion and $37 billion in 2023, with a significant portion attributed to East and Southeast Asia.
The report emphasizes how criminals in the region are integrating emerging technologies like cryptocurrencies and generative AI into their operations, making detection more difficult. Blockchain analytics can identify the sources of crypto transactions, but the lack of regulatory oversight in some countries allows bad actors to exploit unregulated virtual asset service providers (VASPs).
Masood Karimipour, UNODC’s Regional Representative, expressed concerns about the rapid evolution of organized crime outpacing governments’ ability to respond effectively. Criminals often use unregulated online gambling platforms and non-KYC instant exchange services to launder proceeds across borders.
The report follows a surge in cybercrime activities in Southeast Asia, where organized crime groups have expanded their operations into cyber fraud and crypto-based money laundering. Criminals are also leveraging generative AI to create deepfakes, enhancing their ability to deceive and defraud victims. The rise in these crimes coincides with global trends in using crypto for sanctions evasion and election interference, as seen in regions like Russia.
