Southeast Asia-based criminal organizations are employing sophisticated networks and advanced technologies to significantly expand their illicit operations globally, according to a United Nations Office on Drugs and Crime (UNODC) report released Tuesday. These groups are building a rapidly growing illegal economy that now reaches far beyond Asia, with fraud and scams alone estimated to have cost victims between $88.3 billion and $114.1 billion in 2025.
The UNODC report indicates a shift where transnational crime, once primarily concentrated in Southeast Asia, is now more dispersed globally. Concurrently, international criminal syndicates are increasing their involvement in drug, human, and wildlife trafficking within Asia.
Criminals are utilizing new technologies to launder money through global financial systems and employing artificial intelligence to defraud victims worldwide. The report highlights a disturbing threat to children, noting the rise of AI in creating child sexual abuse material and the exploitation of online gaming platforms. Hundreds of scam compounds located across Southeast Asia reportedly serve as hubs for sex trafficking and the distribution of child sexual abuse content.
"There is a huge jump in AI-generated child sexual images ... communicated through encrypted communications platforms," stated Inshik Sim, a UNODC researcher and report coordinator, during a briefing. East Asian crime syndicates are reportedly using malware, generative AI, and deepfakes for sexual extortion and exploitation, escalating risks of both in-person abuse and livestreamed exploitation. Victims can also be forced into domestic servitude, begging, and forced labor.
Social media, online gaming, and gambling platforms also present dangers, with surveys indicating that hundreds of children and teenagers in Southeast Asia are engaged in online gambling, with some developing addictions.
The report estimates the combined annual sales of illicit drugs in Southeast Asia and adjacent regions to be as high as $109 billion, with significant increases in the seizure of illegal shipments, including methamphetamines, heroin, and ketamine.
The Sulu-Celebes maritime region, situated between Indonesia, Malaysia, and the Philippines, is identified as an increasingly critical route for cocaine shipments originating from Latin America destined for Asia. Illicit cargo is sometimes concealed within legitimate shipments, such as Chinese tea. This area is also frequently used for smuggling wildlife and small arms.
Meanwhile, Thailand and Vietnam are emerging as primary sources for cannabis destined for illegal markets in Japan and Europe.
Recent enforcement actions include a seizure of over 3 tons of methamphetamine, ketamine, and ecstasy in Malaysia's Sabah region earlier this year, marking the largest such seizure there to date.
The UNODC report details how cross-border financial and technological networks are underpinning what it terms a "criminal service infrastructure" that supports global organized crime. The tools employed include cryptocurrency, encrypted communication platforms, and generative AI for crafting convincing phishing content, and executing real-time deepfake videos and voice calls. AI-powered translation tools enable targeting of victims across multiple languages simultaneously.
Satellite communication technology allows scam compounds to operate in remote locations or areas under surveillance. To combat this evolving criminal ecosystem, the report calls for a coordinated, cross-border strategy that integrates enforcement across data, communications, financial systems, and online services.
Authorities in Thailand, China, and other nations have raided large-scale scam operations, primarily in border regions of Myanmar, Laos, and Cambodia. In response, criminals have reportedly relocated operations to other parts of the world or downsized their activities. "They were destroyed, but none of the operations stopped," noted Seong Jae Shin, a UNODC analyst. He added that scam centers have moved into villas and other properties, operating more covertly, making crackdowns more challenging for local authorities.