A United Nations Office on Drugs and Crime report says a suspected scam call operation and a network of companies with apparent links to a new free trade zone were discovered in East Timor, highlighting the continued spread of computer-enabled scam centers in Southeast Asia.
The UNODC said the findings follow a late-August police raid on a suspected scam centre in the Special Administrative Region of Oecusse, an exclave of East Timor located on the Indonesian half of the island shared by the two countries. Authorities detained more than 30 foreigners, identified as nationals of Indonesia, Malaysia and China, for working without permission; the agency said it was unclear whether any of those detained had been trafficked.
United Nations investigators tied activity around the Oecusse raid to companies operating in the newly established Oecusse Digital Centre, a free trade zone opened in December 2024. The report warns that free trade zones and special economic zones across the region have been exploited to facilitate cyber-enabled scams, money laundering and other criminal activity.
"The scale and nature of the activity we are now seeing – similar to what we were seeing at the earlier stages of Southeast Asia’s scam industry – shows how far things have progressed," said Benedikt Hofmann, deputy regional representative at UNODC for Southeast Asia and the Pacific. "This is concerning, especially given the boost in connectivity Timor-Leste will be experiencing as part of becoming a full member of ASEAN."
Scam centres are usually walled compounds in remote areas where workers use computers and phones to run fraudulent schemes that UNODC estimates cost victims tens of billions of dollars each year. In recent years such operations have proliferated across Southeast Asia, drawing international attention in countries including Laos, Myanmar, Cambodia and the Philippines. Notorious romance scams, in which workers pose as attractive prospects to lure victims into false investment schemes, have been a prominent example.
The UNODC report also said investigators identified other companies in the region with apparent links to scam networks. One online gaming company, the agency said, is connected to casino networks in Cambodia owned by a Cambodian businessman who has ties to Wan Kuok-koi, the leader of the 14K Triad criminal gang and a figure sanctioned by the United States.
Governments in the region have launched enforcement actions in recent years, but UNODC warned criminal enterprises have shown an ability to relocate. The Philippines carried out a nationwide crackdown last year that resulted in the deportation of thousands of workers found in scam centres. In February, Thailand, Myanmar and China coordinated an operation that led to the release of thousands of workers. Despite these efforts, UNODC said many centres have continued to operate, sometimes shifting locations or using corporate fronts tied to free trade zones.
East Timor, also known as Timor-Leste, is one of the world’s poorest nations with a population of about 1.3 million and is due to become a full member of the Association of Southeast Asian Nations in October. The UNODC report flagged concern that increased connectivity associated with ASEAN membership and the expansion of digital infrastructure could accelerate the reach of cyber-enabled criminal networks if governance and enforcement do not keep pace.
The UNODC has previously warned that scam centres are not confined to Southeast Asia and that operations have surfaced in Latin America and Africa. The agency called for enhanced regional cooperation, stronger corporate transparency in special economic zones, and measures to protect vulnerable workers and potential victims.
Local officials in Oecusse and national authorities in Dili did not immediately provide further public comment on the report’s findings. The UNODC report did not publicly identify all companies named in its investigation nor did it allege that the detained individuals identified in the August raid were victims of trafficking. The agency recommended continued investigation and coordination among law enforcement, labour and immigration authorities to determine the full scope of the networks and to pursue financial and criminal investigations where warranted.
The emergence of suspected scam operations in East Timor underscores a regional pattern: enforcement actions can displace actors, but exploitation of regulatory gaps and newly established economic zones allows criminal networks to adapt and persist. UNODC officials said tracking corporate links, strengthening oversight of special economic zones, and international cooperation will be essential to curtail the transnational crime threat posed by organised scam operations.