UNODC report reveals Asian crime syndicates exploit advanced technology to expand global criminal networks – JURIST

The United Nations Office on Drugs and Crime (UNODC) released a report on Monday showing that Asian crime syndicates have increasingly integrated service-based business models and advanced technologies – including malware, generative artificial intelligence (AI) and deepfakes – into their operations. in addition to the creation of new underground markets and cryptocurrency solutions for money laundering.

The report, titled Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation: A Shifting Threat Landscape, marks the second installment in a series of ongoing threat assessments by the UNODC. It highlights how organized crime groups develop. their tactics in response to technological advances and regulatory gaps.

According to UNODC, the report highlights the growing trend of organized crime groups using under-regulated online gambling platforms and high-risk virtual asset service providers (VASPs) to facilitate the movement, laundering and integration of billions in criminal proceeds into the financial system without accountability . . The findings illustrate that illegal online casino operators have diversified their business models to integrate cyber fraud and cryptocurrency-based money laundering services. In particular, there is significant evidence of the influence of organized crime in casino complexes, special economic zones and border areas.

Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific, warned that “organized crime groups are coming together and exploiting vulnerabilities. and the developing situation is rapidly exceeding the ability of governments to contain it.” He also stated: “By taking advantage of technological advances, criminal groups are producing larger scale and harder to detect fraud, money laundering, underground banking and online scams. This has led to the creation of a criminal services economy, and the region has now become a major testing ground for transnational criminal networks looking to expand their influence and diversify into new industries.”

In addition, the report discusses the disturbing practice of human trafficking for coercive crime, where organized crime groups routinely force thousands of individuals to commit fraud from illegal camps, often through misleading job offers. UNODC estimates that financial losses from scams targeting victims in East and Southeast Asia amounted to between $18 billion and $37 billion in 2023, with a significant portion attributed to activities by organized crime groups. Furthermore, there has been a significant increase in AI-driven crimes, particularly when it comes to deepfakes, with a reported 600% increase in deepfake-related content linked to criminal activity in Southeast Asia in the first half of 2024 .

“The integration of generative artificial intelligence by transnational criminal groups involved in cyber fraud is a complex and alarming trend observed in Southeast Asia, representing a powerful force multiplier for criminal activities, said John Wojcik, UNODC regional analyst. “These developments have not only increased the scope and efficiency of cyber 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.”

The UNODC urges governments to prioritize tackling the growing criminal ecosystem fueled by technological innovation. Building on the ASEAN Regional Cooperation Roadmap, the report provides recommendations for strengthening government responses to transnational organized crime through improved legislation, policies and regulatory enforcement.