The United Nations has issued a stark warning about the rapid global expansion of a multibillion-dollar cyberfraud industry originally rooted in Southeast Asia.
In a new report released on Monday, the United Nations Office on Drugs and Crime (UNODC) said criminal syndicates operating scam centres have moved operations beyond regional borders into South America, Africa, and Eastern Europe, despite mounting crackdowns by local governments.
The cybercrime networks, which evolved from illicit hubs along the Thai-Myanmar border, have become increasingly sophisticated and resilient. These operations often rely on trafficked labor and use psychological manipulation to defraud victims worldwide, according to the report.
Despite intensified law enforcement actions in countries like Thailand, Cambodia, and Myanmar, the UN warns the industry is now entering a “potentially irreversible” phase of global proliferation.
The UNODC report describes a transformation of loosely organised scam groups into a scalable and diversified global criminal enterprise.
Originally operating from walled compounds in lawless regions, particularly in Myanmar’s conflict-ridden border zones, the operations mimic the structure of corporate campuses, housing thousands of workers under duress.
These individuals are often lured with promises of legitimate employment, then coerced into carrying out internet scams.
“The regional cyberfraud industry… has outpaced other transnational crimes, given that it is easily scalable and able to reach millions of potential victims online,” the report notes.
By operating entirely in the digital realm, these syndicates avoid the logistical risks traditionally associated with drug or arms trafficking.
According to the UNODC, the industry now spans hundreds of “scam farms” across the globe, collectively generating tens of billions of dollars annually.
The scale and impact of financial scams in the UK have reached alarming levels, with losses totalling £11.4 billion over the past 12 months, an increase of £4 billion from the previous year.
Nearly one in five Britons, or around nine million people, reported falling victim to a financial scam during that period. Particularly concerning is the underreporting of such crimes, which experts believe masks an even greater crisis.
With many victims hesitant to come forward due to shame, confusion, or mistrust in authorities, the true extent of the problem remains obscured.
Online fraud has emerged as the most prevalent threat, with 87% of UK adults who use the internet encountering suspected scams, and 46% admitting they were personally targeted or deceived. Among those who suffered financial loss, one in five lost more than £1,000, suggesting that online scams are not only widespread but financially devastating.
The most common schemes include payment diversion fraud, investment scams, romance fraud, and attacks on online banking platforms. As cybercriminals refine their methods, the pressure mounts on both public and private sectors to improve digital security, increase public awareness, and close the reporting gap that allows fraud to flourish unchecked.
In the United States alone, cryptocurrency scams cost victims over $5.6 billion in 2023, a significant portion of which was linked to romance and investment scams orchestrated from these centres.
In response, several governments have launched coordinated crackdowns. Thailand, in cooperation with China and Myanmar, has targeted supply lines to known scam centres, cutting electricity, fuel, and internet access.
Cambodia has formed a new commission, chaired by Prime Minister Hun Manet, to strengthen law enforcement and regulatory oversight. The Cambodian government emphasized its dual role as both a victim and a combatant in the cybercrime epidemic.
“We need collaboration, not blame,” said government spokesperson Pen Bona, underlining the complexity of the issue.
However, these measures have often led to a geographical shift rather than a resolution.
As pressure increases in one region, syndicates relocate to more permissive environments, such as Laos or western Cambodia, and are now establishing footholds as far afield as Zambia, Angola, Namibia, and Georgia.
The UNODC has described this phenomenon as akin to “a cancer” that mutates and migrates in response to treatment.
One of the most disturbing elements of the industry is its reliance on human trafficking. Workers from over 50 countries, including Nigeria, Sri Lanka, Brazil, and Uzbekistan, have been rescued during recent law enforcement operations.
Many were unaware of the nature of the work until arrival, at which point their documents were confiscated and they were subjected to violence or threats.
The cross-border nature of the scams also complicates enforcement and victim recovery. Financial trails are often obfuscated through cryptocurrencies and underground banking networks, some linked to South American drug cartels, according to UNODC intelligence.
Experts argue that unilateral responses are insufficient. The UNODC is urging a multilateral strategy that includes financial intelligence sharing, coordinated policing, and robust cyber regulation frameworks. Analysts stress that without such measures, the industry will continue to outpace enforcement.
