According to the agency, the gangs have gained new footing in Africa, South America and the Middle East, causing a loss of $37 billion in Asia.
The Asian Cybercrime Syndicate has caused an estimated $37 billion losses in the East and Southeast Asia regions, and the United Nations has warned of the global expansion of criminal networks.
In a report released Monday, the United Nations Office for Drugs and Crimes (UNODC) detailed how Chinese and Southeast Asian gangs target tens of millions of dollars of victims each year with an array of cybercrimes that include fake investments, cryptocurrency, romance and other frauds.
The criminal organization operates primarily from creepy compounds in Myanmar’s border regions, and operates in so-called “special economic zones” designed to attract foreign investment in Cambodia and Laos. They are often dependent on human trafficked workers and are forced to work with eerie compounds.
The report said that in 2023, countries in East and Southeast Asia lost an estimated $37 billion to cyberphrases, but there were “a much larger estimated losses” around the world.
The report warned that the network is spreading across South America, Africa, the Middle East, Europe and the Pacific Islands.
“We can see a global expansion of organized crime groups in East and Southeast Asia,” said Benedict Hoffman, representative UNODC region for Southeast Asia and the Pacific.
“This reflects both industry growth and strategies to avoid crackdowns in Southeast Asia,” Hoffman said.
“Spreads like cancer”
The report said the syndicate has established footholds in African countries, including Zambia, Angola and Namibia, and Pacific Island countries, including Fiji and Vanuatu.
They also formed alliances with South American drug cartels, Italian mafia and Irish gangs, expanding their money laundering strategies, according to the report.
According to the report, Cryptocurrency mining – usually referring to creating new cryptocurrencies and verifying transactions has become an important tool for obscuring illegal funds.
In one instance, in June 2023, Libyan authorities raided illegal crypto mining operations in areas controlled by militias, arresting 50 Chinese citizens.
The recent crackdown in Myanmar, backed by China, has also released around 7,000 trafficked workers.
However, the UN warned that the syndicate has proven to be skilled in adaptation while enforcement temporarily disrupts operations.
“It’s spreading like cancer,” Hoffman said. “The authorities deal with it in one area, but the roots don’t disappear, they simply move.”
New technologies further complicate the situation as they run a self-contained digital ecosystem to avoid law enforcement using encrypted messaging, payment apps and cryptocurrencies.
The UN agency further warned that “potentially irreversible ripples have occurred… leaving criminal groups free to choose, choose and move as needed.”
It urged the country to cooperate and strengthen efforts to disrupt criminal network funding.