A sweeping new report from the United Nations Office on Drugs and Crime warns that criminal networks rooted in Southeast Asia have evolved into a sophisticated, technology-driven global threat — with fraud schemes expected to drain between $88.3 billion and $114.1 billion from victims around the world in 2025 alone.
What was once a regional problem has grown into something far more dangerous. Transnational crime groups that previously operated mainly within Southeast Asia have spread their operations to other parts of the globe, while international criminal organizations are increasingly moving drugs, people, and wildlife through Asian networks.
The report, released Tuesday, describes how criminals are now using cutting-edge tools — including artificial intelligence, cryptocurrency, and encrypted messaging platforms — to launder money through the international financial system and target victims in multiple languages simultaneously.
Among the most alarming findings is the threat posed to children. AI-generated child sexual abuse material is on the rise, and scam compounds throughout Southeast Asia are being used as venues for sex trafficking and the distribution of exploitative content.
“There is a huge jump in AI-generated child sexual images … communicated through encrypted communications platforms,” said Inshik Sim, a researcher and coordinator for the report at the UNODC, speaking to reporters at a briefing at the Foreign Correspondents Club of Thailand.
East Asian crime syndicates are deploying malware, generative AI, and deepfake technology for sexual extortion and exploitation. Beyond the digital realm, these activities are also increasing the risk of in-person abuse, livestreamed exploitation, and grooming. Victims can also be trafficked into forced labor, domestic servitude, and forced begging, the report notes.
Social media, online gaming, and gambling platforms also present growing dangers for young people. Surveys cited in the report found that hundreds of children and teenagers across Southeast Asia are engaged in online gambling, with some showing signs of addiction.
On the drug trafficking front, the report estimates annual illicit drug sales across Southeast Asia and surrounding nations at as much as $109 billion. Seizures of illegal shipments have surged, with methamphetamines, heroin, and ketamine among the substances being trafficked.
A maritime corridor known as the Sulu-Celebes “triangle” — situated between Indonesia, Malaysia, and the Philippines — is identified as a growing route for cocaine shipments from Latin America into Asia. Smugglers have been known to hide illegal cargo inside legitimate goods such as Chinese tea. The same corridor is also being used to smuggle wildlife and small arms.
Thailand and Vietnam have emerged as growing sources of cannabis being shipped to Japan, where the drug remains illegal, as well as to Europe, the report says.
Earlier this year, authorities in Malaysia’s Sabah region made the largest drug seizure in that area’s history, confiscating more than three tons of methamphetamine, ketamine, and ecstasy.
The report describes an interconnected “criminal service infrastructure” supported by satellite communications, which allows scam operations to function even in remote or heavily monitored locations. Generative AI is being used to craft convincing phishing messages, while real-time deepfake videos and voice calls are deployed to deceive victims.
When authorities in Thailand, China, and elsewhere raided large-scale scam centers — many located in border regions of Myanmar, Laos, and Cambodia — criminal groups adapted by moving to smaller, less visible locations such as private villas.
“They were destroyed, but none of the operations stopped,” said Seong Jae Shin, an analyst and counter-terrorism official at the UNODC.
“It’s much harder for the Cambodian authorities to crack down now,” Shin added, noting that the shift underground has made enforcement significantly more difficult.
The report calls for a coordinated international response that spans data systems, financial networks, communications platforms, and online marketplaces to effectively combat the expanding criminal ecosystem.
