Transnational organized crime groups originating from East and Southeast Asia are expanding their scam operations globally, prompted by increased enforcement efforts from regional authorities. A recent United Nations report highlights this concerning trend, as these criminal enterprises seek new territories to continue their illicit activities.
For several years, scam operations have been concentrated in Southeast Asia, particularly in the border regions of Cambodia, Laos, and Myanmar, as well as in the Philippines. These operations have been mobile, constantly relocating to evade police actions. However, their influence now extends beyond Asia, with scam centers reported in Africa and Latin America. These centers have exploited countless victims through fraudulent activities like romantic scams, investment fraud, and illegal gambling schemes, amassing billions of dollars.
The report, released by the United Nations Office on Drugs and Crime, titled “Inflection Point: Global Implications of Scam Centers, Underground Banking and Illicit Online Marketplaces in Southeast Asia,” underscores how Asian crime syndicates are infiltrating remote regions characterized by weak law enforcement. This expansion not only seeks new business opportunities but also aims to mitigate risks posed by intensified crackdowns in Southeast Asia.
According to the report, these industrial-scale scam centers produce nearly $40 billion in annual profits. As crackdowns increase, particularly against syndicates in Africa, South Asia, the Middle East, and Pacific islands, crime groups have diversified their operations. This diversification includes laundering money, trafficking individuals, and recruiting operatives, activities now detected across Europe, North America, and South America.
In Africa, Nigeria has emerged as a notable location for these activities, with law enforcement operations resulting in numerous arrests. These arrests include individuals from East and Southeast Asia involved in cryptocurrency schemes and romance scams. Zambia and Angola have also disrupted Asian-linked cyber fraud networks.
In Latin America, Brazil faces mounting challenges associated with cyber fraud, online gambling, and money laundering. These issues have connections to criminal groups based in Southeast Asia. Meanwhile, in Peru, authorities rescued over 40 Malaysians in late 2023, victims of the Red Dragon syndicate, a Taiwan-based gang that forced them into cyber fraud.
Similar crackdowns have targeted Asian-led scam centers in the Middle East and various Pacific islands. The UN report warns of the increasing involvement of criminal groups from other regions, further complicating the global crime landscape.
Technological advancements, including online marketplaces, money laundering networks, stolen data products, and enhanced use of artificial intelligence and deepfake technologies, have facilitated the growth of “crime as a service.” These innovations allow criminal organizations to adapt swiftly to law enforcement pressures and expand their reach.
The convergence of professionalized operations with geographic expansion presents an intensified challenge for governments worldwide, necessitating vigilant and coordinated responses to curb this growing threat.
