Cybercrime in Southeast Asia will generate up to $37 billion by 2023, the UN reports

UN reports that cybercrime in Southeast Asia could generate up to $37 billion by 2023

The United Nations Office on Drugs and Crime (UNODC) report shows the rise of cybercrime in Southeast Asia, which could generate up to $37 billion by 2023 alone.

The report reveals a rapid pace of change regarding organized crime in the region, highlighting the increased rate of change and growing complexity of the cybercrime groups.

Increasing threats and sophistication

The UNODC also stated that the Mekong region, particularly Myanmar, Cambodia and Laos, has emerged as a central hub for transnational crime groups. These alliances are not only expanding areas of operation, but also using malware, generative AI, and deepfakes to commit crimes including love scams, investment fraud, cryptocurrency fraud, and money laundering.

The report further notes that these criminal enterprises have forced hundreds of thousands of people to work in scam centers in casinos, hotels and special economic zones. These zones are quickly becoming focal points for a thriving illicit economy that poses significant governance challenges, especially in border areas in Southeast Asia.

Singapore’s money laundering case

A landmark case in Singapore, where US$3 billion (about US$2.3 billion) was involved in money laundering, highlights the seriousness and potential underestimation of cybercrime. The case, the largest in Singapore’s history, involved financial professionals, pointing to a wider, deep-rooted network of illicit financial flows in the region.

The UNODC warns that the Singapore case, while significant, may represent only the “tip of the iceberg”. The sheer volume of profits generated by these criminal activities necessitates increasingly sophisticated money laundering techniques, with Southeast Asia emerging as a global leader in these illicit practices.

The Southeast Asian region and the global world still have a huge challenge for the international community and regional law enforcement agencies in dealing with the increasing trends in computer-related criminal incidents.

The UNODC report recommended that there should be greater cooperation to arrest and neutralize the complex structures these criminal organizations use to carry out their activities and shield their ill-gotten goods.