Cybercrime Syndicates to Steal About $37 Billion in 2023: Report

What’s the story

According to a recent United Nations report, cybercrime syndicates are estimated to have raked in $37 billion by 2023.

The report notes that these illegal activities are increasing in Southeast Asia, even as law enforcement has stepped up efforts.

“The transnational organized crime threat landscape in Southeast Asia is evolving faster than ever before in history,” said the UN Office on Drugs and Crime.

The Mekong region is becoming a hotbed of cybercrime

The UN report points to a spike in illegal cyber activities since the pandemic, especially in the Mekong region.

Countries such as Myanmar, Cambodia and Laos have become a hotbed for crime syndicates.

These groups are involved in a range of fraudulent activities, including romance investment schemes, cryptocurrency scams, money laundering and illicit gambling activities.

Cybercriminals use advanced technologies for their operations

The report also highlights that these cybercrime syndicates are adopting new service-based business models and advanced technologies.

They integrate malware, deepfakes and generative AI into their activities.

They also set up new underground markets and cryptocurrency solutions to facilitate their money laundering activities.

Southeast Asia’s illicit economy fuels innovation in money laundering

The UN says the huge proceeds from the region’s booming illicit economy are fueling innovation in money laundering.

“The sheer volume of proceeds generated within the region’s booming illicit economy has necessitated the professionalization and innovation of money laundering operations, and transnational criminal groups in Southeast Asia have emerged as global market leaders,” the report said.

Syndicates exploit vulnerable individuals and intensify operations

Hundreds of thousands of people are reportedly trafficked to these countries and forced to work in scam centers.

Properties such as hotels, casinos and special economic zones have become hotspots for this booming illegal economy.

This has exacerbated pre-existing governance problems in many border areas of the region.

Cyber fraud causes significant financial losses in Asia

The wave of cyber fraud has resulted in massive financial losses ranging between $18 billion and $37 billion due to scams targeting victims in East and Southeast Asia by 2023.

The report also notes Singapore’s $2.3 billion money laundering case, the country’s first criminal action against financial professionals and one of the largest money laundering investigations ever.