The rise of AI-driven scams and human trafficking in South-East Asia may be fuelling massive financial losses and exploitation, with criminal syndicates leveraging advanced technology to evade authorities.
Authorities have launched a crackdown on human trafficking and online scam hubs in the Mekong region in South East Asia, rescuing over 7,000 victims and cutting power and internet to scam hubs. However, this effort pales in comparison to the widespread crime syndicates which are rapidly expanding and becoming harder to detect due to the use of AI and deepfake technology.
“The integration of generative artificial intelligence by transnational criminal groups involved in cyber-enabled fraud is a complex and alarming trend observed in Southeast Asia, and one that represents a powerful force multiplier for criminal activities,” says John Wojcik, UNODC Regional Analyst. “These developments have not only expanded the scope and efficiency of cyber-enabled 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.”
“Despite mounting enforcement efforts, cyber-enabled fraud has continued to intensify, resulting in estimated financial losses between USD 18 billion and USD 37 billion from scams targeting victims in East and Southeast Asia in 2023,” the report states.
According to The United Nations Office on Drugs and Crime (UNODC) October 2024 report, there is an alarming scale of cyber-enabled fraud,
A significant portion of these losses has been attributed to organized crime groups operating in the Mekong region (Cambodia, China, Laos PDR, Myanmar, Thailand, or Vietnam). Additionally, there was a 600% surge in deepfake-related content in the first half of 2024, further demonstrating the increasing reliance on AI-driven deception.
Research conducted by UNODC to analyse illicit financial flows in the Mekong region claims that the “scam industry in one country in the region may be generating between USD7.5 and USD12.5 billion, which is half this country’s gross domestic product.”
According to UNODC, these illicit operations are linked to both legal and illegal establishments, including casinos, hotels, and registered businesses. These entities function as fortified compounds where victims are trapped and coerced into cyber-enabled crimes.
AI-driven fraud has significantly bolstered the reach and effectiveness of these criminal enterprises. AI-powered recruitment tactics and sophisticated money-laundering mechanisms make it increasingly difficult for authorities to track and dismantle these operations.
Criminals are also using artificial intelligence to generate highly realistic deepfakes of police officers, employers, and even family members, manipulating victims into compliance.
The first half of 2024 saw a 600% increase in deepfake-related scams, highlighting the growing sophistication of these fraudulent schemes.
These cyber-crime syndicates impact trafficked individuals who are forced to run online scams, victims who are financially exploited to secure their freedom after being abducted and held captive.
A lesser-discussed group consists of individuals who knowingly participate in scam operations due to poverty and financial compulsions, but are not victims of trafficking.
Organized crime groups also communicate with potential victims through messaging apps such as WhatsApp, Line, Telegram, and Messenger. Recruitment for these scams often takes place on social media and messaging platforms like WeChat, Telegram, Facebook and Instagram, which are widely used to lure unsuspecting individuals with fraudulent job advertisements.
