Date: 11.10.2024

by Sebastian Warowny

UNODC Warns of Cybercrime and Illegal Online Gambling in Southeast Asia

The United Nations Office on Drugs and Crime (UNODC) has sounded the alarm on the rapid rise of cybercrime and online gambling in Southeast Asia. The agency’s latest report puts scams and illegal activities in the region at $37 billion in 2023 with most of this linked to organized crime groups.

Organized Crime Moves into Digital Space

UNODC says criminal networks in East and Southeast Asia are using online platforms to carry out illegal activities. The Mekong region has become “a key testing ground” for these activities where criminal enterprises are exploiting technology and digital infrastructure to expand their reach.

The report shows that these groups use underregulated platforms, including online gambling and Special Economic Zones (SEZs) to launder proceeds from illegal activities such as drug production, human trafficking and cyber fraud.

Hubs for Illicit Activity

UNODC’s research shows how casinos, hotels and SEZs have become the backbone of organised crime in Southeast Asia. These locations are hubs for transnational criminal groups, where they can operate illegal businesses with impunity.

The UNODC report notes that “underregulated casinos, junkets, and illegal online gambling platforms are critical infrastructure for transnational organised crime groups operating in and beyond the region.”

These properties are used not only for money laundering but also as bases for other illegal activities such as forced labor and prostitution.

Challenges in Law Enforcement

Enforcing laws against illegal online gambling has been tough for authorities in the region. The rapid growth of these activities has created a huge shadow economy operating in grey, black and pre-regulated markets.

Criminal networks have developed ways to process and launder illegal transactions and are now offering services called “laundering-as-a-service”. This has made it even harder to control the situation. According to Masood Karimipour, UNODC’s regional representative, “the evolving situation is rapidly outpacing governments’ capacity to contain it.”

The Role of Artificial Intelligence in Crime

Another worrying trend mentioned in the report is the growth of AI-driven cybercrime particularly deepfakes. In the first half of 2024, mentions of deepfake-related content linked to criminal groups jumped by over 600%. The use of generative AI has made it easier for less skilled criminal networks to do sophisticated cyber fraud.

“The integration of generative artificial intelligence by transnational criminal groups involved in cyber-enabled fraud is a complex and alarming trend,” said John Wojcik, UNODC regional analyst. He noted AI has expanded the reach and impact of cybercrime in the region.

Immediate Government Response

Given these findings, the UNODC urges governments to act fast and decisively to address the cyber fraud and illegal online gambling in Southeast Asia.

The report recommends more regulations and international cooperation to counter the growing power of organised crime in the digital space.