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Asian crime syndicates are weaponizing AI, Telegram, and cryptocurrency to expand their reach, according to a report released on Monday, October 7, by the United Nations Office on Drugs and Crime (UNODC). The surge in tech-driven crime is leaving law enforcement scrambling to keep up with increasingly sophisticated crimes.
“Organized crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing governments’ capacity to contain it,” said Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific (SEAAP). “This has led to the creation of a criminal service economy, and the region has now emerged as a key testing ground for transnational criminal networks looking to expand their influence and diversify into new business lines.”
The report estimates that cyber-enabled fraud generated losses of between $18 billion and $37 billion in East and Southeast Asia in 2023. The report also highlights a more than 600% increase in mentions of deepfake-related content on monitored online platforms during the first half of 2024.
The integration of AI-driven technologies, including deepfakes and malware, into criminal operations has not only expanded the scope and efficiency of cyber-enabled fraud but also lowered the barriers to entry for criminal networks.
“These developments have not only expanded the scope and efficiency of cyber-enabled fraud and cybercrime; they have also lowered the barriers to entry for criminal networks that previously lacked the technical skills to exploit more sophisticated and profitable methods,” said John Wojcik, UNODC Regional Analyst.
The Dark Side of Encrypted Messaging
Telegram, known for its encryption and anonymity, has become a favored platform for criminals, facing global criticism for lax content moderation. This has allowed crime syndicates to expand into areas like sextortion and digital sex crimes, complicating law enforcement efforts.
French authorities recently charged CEO Pavel Durov for not cooperating in investigations of drug trafficking and child exploitation. Meanwhile, criminals are increasingly using AI-generated deepfakes to impersonate individuals and conduct scams, prompting South Korean authorities to force the removal of deepfake videos from the app.
“For consumers [of Telegram], this means their data is at a higher risk of being fed into scams or other criminal activity than ever before,” Benedikt Hofmann, UNODC’s deputy representative for SEAAP told Reuters.
Cryptocurrency as a Catalyst for Crime
Cryptocurrency, particularly Bitcoin and stablecoins like Tether (USDT), has become an essential tool for money laundering in the criminal underworld. Virtual currencies such as these allow criminals to bypass traditional banking systems without any trace, making it harder for regulators to freeze assets or track transactions.
The UNODC report explained how organized crime groups use virtual asset service providers (VASPs) in poorly regulated areas to move billions in illicit funds. A recent case uncovered a VASP in Southeast Asia processing between $49 billion and $64 billion in crypto transactions, often tied to cyber-enabled fraud and drug trafficking.
As syndicates professionalize and partner with specialized service providers, law enforcement faces an uphill battle to contain cyber-enabled fraud, compounded by the fast-paced advancements in AI and the decentralized nature of cryptocurrencies and encrypted messaging apps.
The UNODC has called for greater international cooperation to combat these evolving threats, emphasizing that a coordinated global effort is necessary to disrupt the technological networks fueling organized crime.
“It is more critical than ever for governments to recognize the severity, scale, and reach of this truly global threat, and to prioritize solutions that address the rapidly evolving criminal ecosystem in the region,” Karimipour stressed.
