The UN Office on Drugs and Crime has released a comprehensive report documenting how Asian crime syndicates have become global leaders in cyber-enabled fraud, money laundering, and underground banking.
Key findings that should concern everyone in the financial integrity space:
- Scam centers in Southeast Asia are generating tens of billions annually, with victims worldwide losing an estimated US$37 billion in 2023 alone
- Criminal networks have created self-sustaining ecosystems incorporating AI, deepfakes, and malware while developing their own financial infrastructure to evade detection
- Illicit online marketplaces like Huione Guarantee are processing billions in cryptocurrency transactions, providing one-stop shops for fraud resources and money laundering services
- Criminal groups are rapidly expanding beyond Southeast Asia into Africa, the Pacific Islands, South America, and other regions as enforcement pressure increases
The scale and sophistication of operations
The report highlights how these networks have evolved from scattered fraud gangs into sophisticated criminal enterprises with robust multi-lingual workforces and advanced technological capabilities, showing increasing professionalization and global reach of these fraud networks. Their ability to develop parallel financial infrastructures makes tracing and recovering stolen assets increasingly complex.
This evolution presents unprecedented challenges for asset recovery specialists, requiring enhanced cross-border cooperation and specialized blockchain forensic capabilities.
Additional concerning trends
- Industrial scale operations: Hundreds of industrial-scale scam centers across Southeast Asia collectively generate close to $40 billion in annual profits, with tens of thousands of people trafficked and forced to work in these compounds under extreme conditions
- Global criminal collaboration: These syndicates have established operational links with major global criminal organizations, including the Italian mafia, Irish mob, and Latin American drug cartels. Some networks with Chinese ties have helped Mexican cartels launder money through underground banking
- Explosive growth in AI-enabled fraud: The use of AI and deepfake technology in scams has surged, with a 600% increase in AI-generated deepfake content tied to fraud in early 2024. Deepfake-enabled fraud caused more than $200 million in losses globally in Q1 2025, with video content leading at 46% of incidents
- Sophisticated evasion tactics: As authorities crack down in one area, operations simply migrate to new locations in more remote or under-governed regions. Criminals are increasingly shifting from land-based internet to satellite providers like Starlink to evade shutdowns
- Widespread human trafficking: People from 56 countries have been identified as victims of trafficking for these scam operations, with the majority from Asian and African nations
The full UNODC report provides crucial insights for financial crime investigators, compliance professionals, and asset recovery specialists facing these evolving threats.
