Online Scams Cost Asia-Pacific $114 Billion Annually: UNODC

Ms. Delphine Schantz, UNODC Regional Representative, highlighted that online scams are becoming a significant revenue source for organized crime and are rapidly expanding across borders. Losses from scams in East Asia, Southeast Asia, Australia, and New Zealand amount to $114 billion annually, a figure that is rapidly increasing. Ms. Schantz stated that this figure does not yet include losses from other regions of the world. She also noted that the United States estimates losses from scams at approximately $10 billion annually, while Europol considers these scam schemes to be one of the fastest-growing sectors among organized crimes. "Online scams not only cause citizens to lose money but also impact economic activity, public confidence in institutions, and the rule of law," Ms. Schantz asserted. According to UNODC's assessment, the scam industry in Southeast Asia is transforming from fragmented criminal networks into a single, technology-driven transnational criminal economy. These networks are interconnected with specialized branches involved in money laundering, human trafficking, migrant smuggling, and data collection. Ms. Schantz likened the operation of these criminal networks to a "franchise model" due to their ability to provide services and cooperate across borders. This makes it increasingly difficult for law enforcement agencies to distinguish between victims and perpetrators, and to ensure adequate protection and assistance for victims. She also warned that criminals are utilizing new technologies such as cryptocurrencies, virtual asset service providers, and malware to expand their activities and evade law enforcement. "Some criminal groups are not only using new technologies but are also developing new technologies themselves," Ms. Schantz added. Despite these challenges, Ms. Schantz welcomed the growing response in the region, citing the establishment of anti-scam centers, special task forces, and increased law enforcement operations. She specifically cited Cambodia as an example of a country intensifying its efforts to shut down scam operations. Furthermore, the establishment of an inter-ministerial commission (or special commission) on combating online scams and the organization of this international conference demonstrate Cambodia's commitment and openness to collaborating with other nations. Ms. Schantz proposed focusing on five key areas: 1. Fostering a common understanding of scam crime trends and evolution. 2. Strengthening legal frameworks and the capacity to collect, manage, and analyze digital evidence. 3. Enhancing inter-agency cooperation and information sharing. 4. Increasing the involvement of the private sector, particularly FinTech and social media. 5. Thoroughly studying the flow of profits from scams and how to prevent their reinvestment into criminal systems. "Online scams are not an issue that any single country can solve alone. Therefore, continuous cooperation at national, regional, and international levels is needed to prevent criminal networks from moving from one place to another," Ms. Schantz emphasized. She also expressed gratitude to the Cambodian government for hosting the conference and called on participating countries to determine concrete and actionable steps to create a more effective response to online scams.