Telecom scams in Southeast Asia are rampant, prompting international collaborative action.
On Tuesday, the United Nations, the Association of Southeast Asian Nations (ASEAN), and China jointly announced a new agreement in Bangkok, Thailand, to combat organized crime and human trafficking. The plan, co-hosted by the Philippines and the United Nations Office on Drugs and Crime (UNODC), has been finalized and will be presented at the next ASEAN Senior Officials Meeting on Transnational Crime by the Philippines.
The agreement states that recruiting victims for criminal activities is just a part of transnational organized crime. Digital tech fraud, extortion, money laundering, and corruption are proliferating. Illicit financial flows have reached a level that threatens governance and stability in certain regions.
To ensure regional safety and prosperity, ASEAN and China aim to establish a comprehensive strategic roadmap for the entire region, focusing on four main areas: preventing organized crime from infiltrating communities, economies, and political institutions; tracing organized crime groups and their illicit gains through criminal justice procedures to enhance corporate accountability and reduce risks of illegal operations; protecting vulnerable groups and victims from further harm; and promoting partnerships and cooperation at all levels.
Specific measures include establishing inter-agency coordination centers in ASEAN countries and China and holding annual regional liaison network meetings.
Jeremy Douglas, UNODC's representative for Southeast Asia and the Pacific, noted the rapid increase in human trafficking related to casinos and scams operated by organized crime in Southeast Asia, especially in the Mekong region. He emphasized the urgent need for regional cooperation to address the increasingly integrated and interconnected crime issues and dismantle their ecosystems, with the UN ready to offer support.
The Unquantifiable Scale
Chinese internet users are no strangers to telecom scams, with news of Chinese victims frequently sparking public outrage. A UN report confirms some of these grim rumors.
According to a report released by the UN High Commissioner for Human Rights on August 29, hundreds of thousands of people in Southeast Asia are being forced by organized crime groups to engage in cybercrimes such as romance investment scams, cryptocurrency fraud, and illegal gambling. However, due to its clandestine nature and challenges in official tracking, the exact scale of online scam transactions in Southeast Asia remains elusive.
The report cites "reliable sources" claiming that at least 120,000 people in Myanmar might be forced into online scams, with Cambodia estimated to have around 100,000. Other countries in the region, including Laos, the Philippines, and Thailand, have also been identified as major destination or transit countries, with tens of thousands involved.
The report found that these transnational organized crime groups operate openly, not in the shadows. In some cases, they even masquerade as legitimate business entities or even charitable organizations. Some crime leaders have even formed public alliances with influential business leaders and officials.
While some Southeast Asian countries have established legal and policy frameworks related to combating trafficking, the report believes that in some cases, these frameworks do not meet international standards. Additionally, there are instances where crimes go unpunished.
Through various operations, criminal organizations are generating unprecedented profits. The UNODC estimates that in one Southeast Asian country, scam groups generate annual revenues between $7.5 billion and $12.5 billion, "amounting to half of the country's GDP."
The UN's latest press release cites regional security officials saying that scam groups are increasingly diverting illicit gains through the gaming industry and other large cash flow businesses, including using hard-to-trace cryptocurrencies. Additionally, they are venturing into real estate and luxury sectors from Bangkok to Singapore.
This was corroborated by a news story that went viral in Singapore last month. On August 15, Singapore arrested 10 foreigners suspected of forging documents and laundering money for overseas crimes. The case involved nearly SGD 1 billion (approximately USD 736 million), with 94 properties and 50 vehicles seized, making it one of the largest money laundering and forgery cases in the country's history.
The Profound Impact of the Pandemic
The COVID-19 pandemic has had a significant impact on telecom scam activities in the region. The report states that due to pandemic measures, many countries closed offline casinos, leading organizers to shift their operations online and to less regulated border areas and special economic zones.
In this context, stranded foreign migrants became one of the targets for criminal groups. Due to border closures and limited business activities, some unemployed individuals were lured into the organizations by fake high-paying job offers. Additionally, during strict pandemic measures, many were forced to stay home, spending more time online, providing fertile ground for online scam activities.
The report states that most victims are not citizens of the countries they are in. They mainly come from the ASEAN region (Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), South Asia, as well as mainland China, Taiwan, and Hong Kong, and even as far as Africa and Latin America. Most are males, with a small number of females and teenagers. Many victims are well-educated, some with postgraduate degrees, computer literate, and multilingual.
They have experienced a series of severe human rights violations and abuses. For instance, many have been subjected to torture and cruel, inhumane, and degrading treatment or punishment.
The UNODC predicts that these scam groups will quickly adapt to the new situation and will increasingly rely on highly skilled tech workers. Furthermore, the development of artificial intelligence and translation tools has greatly increased the efficiency of scammers, which may reduce the demand for multilingual victims and shift towards those with IT skills and/or experience using various social media platforms and communication channels.
In response to the evolving situation, regional actions are increasing. In May, ASEAN leaders agreed at a summit in Indonesia to strengthen border controls and law enforcement and expand public education. In June, Philippine police launched a raid, rescuing over 2,700 victims from China, the Philippines, Vietnam, Indonesia, and several other countries. Meanwhile, China will establish a temporary strict border control zone in Tengchong, Yunnan, starting October 1, to address telecom scams related to northern Myanmar.
