UN illustrates that organized crime groups tap the vulnerabilities to utilize crypto and evolving digital space to overcome government control.
Illicit actors hailing from Southeast Asia increasingly embrace digital assets to scale harder-to-detect fraud. In the recent disclosure, the UN associates the illicit actors with money laundering, online scams and underground banking.
The disclosure by the United Nations Office on Drugs and Crime (UNODC) approximates financial losses arising from the scams whose victims hail from the East and Southeast Asia averaged $18B to $37B last year. The substantial portion of this loss arose from the organized crime groups from that region.
In its recent report, UNODC demonstrates emerging technologies, both generative AI and crypto – integrated into elicit activities within the region.
SouthEast Asia Role in Crypto-based Crime
Slava Demchuk who doubles as chief of crypto compliance company AMLBot is optimistic of parties addressing the issue. As a UNODC consultant, he reveals the crypto nature yields the possibility of identify sources by leveraging blockchain analytics tools.
Demchuk elaborated screening process could spot the crypto addresses linked with risks and vulnerabilities including illegal services, sanctions and dark markets. The UNODC representative for the Southeast Asia, Masood Karimipor, indiciated in an October 7 update that organized illicit groups exploit vulnerabilities and evolving digital space to outpace the authorities’ capacity to control.
The Monday announcement by Karimipor shows cybercriminals readily exploit the online gambling platforms, often underregulated. Additionally, the UNODC report indicates they embrace the unauthorized virtual asset service providers in laundering proceeds. The platforms facilitate the illicit actors remit proceeds across borders. The minimal oversight ease the integration of the elicit money into the global financial ecosystem.
The UNDOC report emerges from the recent revelation by the blockchain analytics firm Chainalysis of the spike in the Russian-language platforms offering non-KYC instant exchange services. Such platforms ease sanction evasion and catalyze money laundering.
Chainalysis shows Russia is the loudest and pervasive jurisdiction leveraging crypto to circumvent the sanctions. The intelligence firm attributes Russian actors with disinformation and election malpractice.
Moreover, Chainalysis chief marketer Ian Andrews consider Russia host to international forces utilizing crypto to execute ransomware attacks and disinform the US elections campaigns.
The UN report hints that operators of the illegal online casino scale activities to interate cyber-facilitated fraud and crypto money laundering. It adds that organized crime influence is evident in the special economic zones, borders and casino compounds to conceal illicit engagements.
Demchuk singles out countries not regulating crypto as opening the opportunities for actors pursuing benefits from unregulated services. Such firms are attractive to the criminals given the absence of KYC process and crypto screening absence alongside the ease of exchange.
Southeast Asia a Paradise for Deepfakes?
The recent UNODC report acknowledges the uptick in the deepfakes in the region from generative AI. The criminals have embraced generative AI to enhance their capability in Q1 and Q2 as a means to orchestrate fraud and deceive unsuspecting victims.
“The developments by criminals facilitate their scope and efficiency in orchestrating cyber-based fraud and crime. The UNODC analyst, John Wojcik, echoes the June 2023 report by the UN cautioning the prevalence of AI-generated deep fakes within the conflict zones.
The UN report notes that artificial intelligence harbors unimaginable potential to resolve global challenges. Nonetheless, it poses serious concerns regarding the potential of present advances in generative AI.
The UN report cautions against the organized illicit groups undertaking human trafficking and luring workers into scam operations. Primarily, they mislead the participants into false job advertisements. Alternatively, they coerce victims into fraud and money laundering.
All trademarks, logos, and images displayed on this site belong to their respective owners and have been utilized under the Fair Use Act. The materials on this site should not be interpreted as financial advice. When we incorporate content from other sites, we ensure each author receives proper attribution by providing a link to the original content. This site might maintain financial affiliations with a selection of the brands and firms mentioned herein. As a result, we may receive compensation if our readers opt to click on these links within our content and subsequently register for the products or services on offer. However, we neither represent nor endorse these services, brands, or companies. Therefore, any disputes that may arise with the mentioned brands or companies need to be directly addressed with the respective parties involved. We urge our readers to exercise their own judgement when clicking on links within our content and ultimately signing up for any products or services. The responsibility lies solely with them. Please read our full disclaimer and terms of use policy here.