UNODC Report on Transnational Organised Crime

 GS 3 – INTERNAL SECURITY

 

Context (UNODC):

The 2025 UNODC report titled “Inflection Point: Global Implications of Scam Centres, Underground Banking, and Illicit Online Marketplaces in Southeast Asia” highlights the escalating threat posed by transnational organised crime (TOC) in East and Southeast Asia.

The United Nations Office on Drugs and Crime (UNODC) is a global entity focused on addressing issues like illicit drugs, organised crime, corruption, and terrorism. It publishes significant reports, including the World Drug Report, the Global Report on Trafficking in Persons, and the Wildlife Crime Report.

Key Highlights of the Report:

1. Global Expansion of Transnational Organised Crime (TOC):
   • Syndicates originating in East and Southeast Asia are spreading their operations worldwide.
   • They are active in regions like Africa, South Asia (including India), the Middle East, Europe, North and South America, and the Pacific Islands. This strategic spread helps ensure that operations continue even after regional crackdowns.
2. Industrial-Scale Scam Operations:
   • Hundreds of scam centres have emerged in Special Economic Zones (SEZs) and border towns, such as Sihanoukville (Cambodia) and Myawaddy (Myanmar).
   • These operations are run by trafficked labor forced into cyber fraud, cryptocurrency scams, and sextortion, with an estimated annual revenue of $43.8 billion.
   • These centres often operate from business parks with weak oversight and poor regulation.
3. Human Trafficking and Exploitation:
   • Victims primarily include migrants from India, Bangladesh, Nepal, and Africa.
   • A notable example is the rescue of over 300 Indian nationals from scam centres in Myanmar in early 2025.
   • Victims are subjected to modern forms of digital slavery, being held under duress.
4. Tech-Enabled Crime Networks:
   • TOC groups now operate similarly to tech startups, utilizing AI, deepfakes, malware, and botnets.
   • They use cybercrime-as-a-service models, supported by illicit service providers that offer tools and money laundering mechanisms.
5. Illicit Online Marketplaces:
   • Platforms like Huione Guarantee (Haowang), a Telegram-based black-market escrow service, facilitate the trade of fraud tools, fake IDs, human trafficking, and malware.
   • These platforms use encrypted messaging apps to evade detection by authorities.
6. Diversification of Organised Crime Activities:
   • In addition to cybercrime, TOC networks are branching out into synthetic drug production.
   • A shift towards methamphetamine manufacturing is observed, particularly in Myanmar’s Shan State, illustrating the diversification of both physical and digital criminal activities.
7. Illicit Financial Flows and Money Laundering:
   • Cryptocurrencies such as Bitcoin and USDT are being used to launder proceeds from scams.
   • Informal Value Transfer Systems (IVTS) across Asia and Africa are heavily relied upon, with front companies masking illicit financial channels.
8. Nexus Between Cyber Fraud and Organised Crime Groups (OCGs):
   • Profit-driven: Cyber fraud provides high returns with comparatively low risks for OCGs.
   • Tech-enabled: OCGs employ tools like AI, malware, ransomware, phishing, and deepfakes in their operations.
   • Crime-as-a-service: Syndicates lease cybercrime infrastructure to other criminals.
   • Money laundering: Scam proceeds are laundered through cryptocurrencies and underground channels.
   • Global Reach: Digital tools enable these criminal operations to span borders effortlessly.