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A new report from the United Nations has sounded the alarm over the sophistication of cryptocurrency-related crimes across Southeast Asia, estimated to have caused financial losses ranging between $18 billion and $37 billion in 2023.

The United Nations Office on Drugs and Crime (UNODC) indicates that criminal organizations are increasingly using digital currencies and emerging technologies to commit large-scale fraud, money laundering, and online scams that are becoming more and more difficult to detect.

"Organized crime groups are exploiting vulnerabilities, and the situation is evolving at a pace that is outrunning the governments' capacity to contain it," warned Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific.

The report illustrates how the criminals access weakly regulated online gambling platforms and unauthorized virtual asset services to shuttle illicit funds across borders with limited oversight.

According to the report, in the first half of 2024, generative AI has been increasingly used by criminal groups in Southeast Asia to create convincing deepfakes, enhancing their ability to commit fraud.

"These developments have expanded the scope and efficiency of cyber-enabled fraud and cybercrime," John Wojcik, UNODC Regional Analyst, said.

The UN report also notes that illegal online casino operators have expanded operations into cyber fraud and crypto-based money laundering services, and also often conduct their operations in casino compounds, special economic zones, and border areas to avoid detection of illegal activities.