UNODC report: Southeast Asian crime groups use technology to expand scams and illicit economy globally

Southeast Asia-based criminal groups are using integrated networks and advanced technologies to expand a rapidly growing illicit economy with global reach, according to a new United Nations Office on Drugs and Crime (UNODC) report released on 21 July 2026. Scams alone caused estimated combined losses of $88.3 billion to $114.1 billion in 2025 across East Asia, Southeast Asia, Australia and New Zealand, the UNODC press release states. Even the lower figure exceeds the GDP of several countries in the region.

The report, titled An Interconnected Criminal Ecosystem: Transnational Organized Crime Threat Assessment for South-East Asia 2026, describes a fundamental restructuring of the region’s criminal landscape. Once-fragmented, locally rooted syndicates have merged into a single transnational, tech-driven economy. “What we are seeing is a shift in which groups that stayed within their own geographic domain and criminal specialty are now operating across multiple illicit markets at once, relying on the same service streams,” said Delphine Schantz, UNODC Regional Representative for South-East Asia and the Pacific, as quoted in the press release. Their model resembles corporate franchising, with specialized services for money laundering, people trafficking, data harvesting and more plugged into shared infrastructure.

Criminals are employing generative AI, deepfakes, malware, cryptocurrency (particularly stablecoins like USDT), encrypted messaging platforms and satellite communications to conduct large-scale fraud, launder proceeds and operate remotely, according to details reported by the Associated Press and the UNODC. AI enables convincing phishing, real-time deepfake videos and voice calls, automated victim targeting across languages, and reduced need for human operators. Scam compounds, concentrated in areas of Cambodia, Laos, Myanmar and elsewhere, have used these tools while trafficking individuals from at least 80 countries and territories into forced criminality. Recruitment networks extend through Asia, the Middle East and Africa, with efforts to target speakers of European languages.

The report notes that investment and “pig butchering” romance-cryptocurrency scams form a major portion of losses, with China, South Korea and Taiwan among the hardest hit recently. Crypto wallets linked to Southeast Asian scam operations received over $12 billion in 2025, a 54% increase, per blockchain data cited in secondary reporting. Drug markets remain substantial, with the combined annual retail value of methamphetamine, ketamine and heroin in Southeast Asia and neighbouring countries estimated at $75 billion to $109.7 billion. The Golden Triangle remains a key production hub, while the Sulu-Celebes Seas triangle between Indonesia, Malaysia and the Philippines has grown as a smuggling corridor for drugs, wildlife, arms and technology enablers such as low-earth orbit satellites, the UNODC assessment finds.

Authorities’ raids and crackdowns in Thailand, China and elsewhere have led groups to shift operations to smaller scales, villas, other properties or new regions including parts of Africa and Latin America, rather than cease activities. “They were destroyed, but none of the operations stopped,” an UNODC analyst told reporters, as reported by the AP. The report also highlights risks to children from AI-generated abuse material, online gambling converged with gaming, and other emerging markets including illicit tobacco and firearms.

UNODC recommends coordinated cross-border strategies integrating enforcement on data, communications, financial systems and online platforms, plus following the money through specialized crypto training and prevention efforts. The full report is available on the UNODC website.