3 days ago
- Business
- South China Morning Post
Can Southeast Asia contain growing threat of cyber scams?
As Southeast Asian leaders focus on navigating trade tariffs and the US-China rivalry, a growing threat to the region's economic resilience is being largely overlooked: the rise of billion-dollar cyber scam centres operating with impunity.
These operations not only endanger financial stability and investor confidence, but are also eroding national sovereignty – all while exploiting the region's young, tech-savvy populations who are increasingly dependent on digital services.
The scale of the problem was laid bare earlier when US authorities imposed financial restrictions on entities in Cambodia, Myanmar and the
Philippines accused of enabling large-scale cyber scams. Officials alleged that billions of dollars had been laundered through loosely regulated digital payment networks and bulk IP infrastructure, facilitating schemes ranging from crypto investment fraud to hacks attributed to sanctioned state-linked groups.
While the moves were hailed as a regulatory breakthrough, analysts warn it is a temporary win at best as the criminal networks behind these scams are highly mobile and adaptable, often resurfacing under different guises after enforcement actions.
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The Chinese criminal gangs behind Southeast Asia's scam centres
The Chinese criminal gangs behind Southeast Asia's scam centres
According to an April report by the UN Office on Drugs and Crime, 'it is now increasingly clear that a potentially irreversible spillover has taken place in Southeast Asia, leaving criminal groups free to pick, choose, and move jurisdictions, operations, and value as needed.'
