Asian crime syndicates behind the multibillion dollar cyberscam industry are expanding globally to South America and Africa, as raids in Southeast Asia fail to contain their activities, according to the United Nations Office on Drugs and Crime (UNODC).
The criminal networks that emerged in Southeast Asia in recent years, opening sprawling compounds housing tens of thousands of workers, many trafficked and forced to scam victims around the world, have evolved into a sophisticated global industry.
Even as Southeast Asian governments such as the Philippines have intensified crackdowns, the syndicates have moved within and beyond the region, the agency said, adding that a “potentially irreversible spillover has taken place… leaving criminal groups free to pick, choose, and move… as needed.”
“It spreads like a cancer,” said Benedikt Hoffman, UNODC acting regional representative for Southeast Asia and the Pacific. “Authorities treat it in one area; but the roots never disappear; they simply migrate.”
Conservative estimates indicate there are hundreds of large scale scam farms around the world generating tens of billions of dollars in annual profits, the UNODC said as it called on countries to work together and intensify efforts to disrupt the gangs’ financing.
The United States alone reported more than $5.6 billion in losses to cryptocurrency scams in 2023, including more than $4 billion in so-called pig-butchering scams or romance scams designed to extort money from often elderly and vulnerable people.
Facing crackdowns from governments, the syndicates have adapted, exploiting weak governance and high rates of corruption to thrive. As the situation in Southeast Asia has changed and corrupt governments turn unfriendly to their operations, the syndicates have expanded into South America, seeking potential money laundering and underground partnerships with drug cartels in the region.
We shouldn’t need further warnings, as our country is among those that has extensive experience with such organizations and operations, courtesy the proliferation of POGOs (Philippine offshore gaming operators), whose government issued licenses gave them an illusion of legality while they engaged in the illegal activities outlined by the UNODC. A crackdown is presently in progress, and hopefully we can be successful in ensuring they don’t return, along with helping advise the countries they have migrated to on how to deal with that particular cancer.*
