Transnational scam operations across Southeast Asia have evolved into a global threat, fuelled by weak governance, regulatory loopholes and poor international cooperation, according to experts from UNODC and Thailand.
Benedikt Hofmann, the UNODC’s Regional Representative for Southeast Asia and the Pacific, told Thai PBS World that scam networks have grown “significantly” in recent years and are now operating on a global scale.
He identified three main factors that allow scam operations to persist. These include a lack of governance in certain areas, which allows scam compounds to flourish, loopholes in laws and regulations covering online gambling and money laundering and a lack of cooperation in cracking down on scams and extraditing offenders.
“It's mainly because the organised crime groups behind these operations are very good at identifying loopholes,” Benedikt explains.
“What they do is specifically target these places to set up their scam operations and work there. They specifically target countries where they see lower enforcement capacities or governance challenges that they can use in their favour."
He has also found that organised crime groups are really good at moving freely between countries, using different citizenships to evade arrest or extradition, including sophisticated ways of transferring money between various jurisdictions.
“That is something that makes it really, really difficult to do what law enforcement would normally do under such circumstances, which is to follow the money to get to the source of the issue,” says Benedikt.
The United Nations Office on Drugs and Crime (UNODC) has found that scam operations and cyber-enabled fraud in East and Southeast Asia caused estimated financial losses of between 18 and 37 billion US dollars in 2023, which are the latest figures available.
The Cambodian scam industry alone generates more than 12.5 billion US dollars each year, which is half of the country’s entire GDP, according to the United States Institute for Peace. This proves that transnational scams are causing massive damage and are now a global concern.
Meanwhile, Assoc. Prof. Pol. Lt. Col. Dr. Krisanaphong Poothakool, a Thai criminologist from Rangsit University, agreed that international coordination remains one of Thailand’s biggest challenges in tackling cross-border scams.
He noted that ongoing tensions between Thailand and Cambodia have undermined cooperation on the issue. Cambodia has, however, been attempting to strengthen ties with South Korea, pledging to combat online scams, without needing any cooperation from Thailand.
Therefore, Dr. Krisanaphong suggests that Thailand should take a lead in international collaboration, to create mechanisms for coordination, information-sharing and law enforcement. This, he says, will help improve Thailand’s international reputation on this matter.
“So, I think Thailand needs to become a hero and cooperate with countries who have been affected by these scam operations, such as South Korea, China, the United States, the United Kingdom and other European countries,” Dr. Krisanaphong explains.
Apart from international cooperation, Dr. Krisanaphong added that Thailand should also improve coordination among internal agencies.
He outlined a four-phase plan for reform, comprised of short-, mid- and long-term measures, with urgent steps to be taken, including the establishment of a central task force involving police, anti-corruption bodies and foreign embassies.
“What is most important is that the investigation (of transnational scams) must be transparent,” says Dr. Krisanaphong, adding that tangible results must be seen, not only just the setting up of a task force or making announcements of what the government is doing.
On the other hand, the UNODC’s regional representative believes that countries tackling transnational crimes should not only look at the issue as a policing challenge. As he explains, only deploying police and shutting down scam compound after scam compound will not fix the problem.
“There is a real need to look beyond pure law enforcement and police response, by looking at the broader regulatory framework, whether it's telecom or financial regulations. That's really where more of the focus still needs to be,” Benedikt concluded.
To date, Thailand’s Prime Minister Anutin Charnvirakul announced that it has prioritised efforts to combat transnational scams as part of the national agenda. One such being to cut internet connections and electricity supplies immediately to all areas in two neighbouring countries known to shelter online scam operations.
The Inter-Parliamentary Union (IPU) in Geneva, Switzerland, has also accepted Thailand’s resolution on transnational crimes and scams for discussion as a matter on its emergency agenda.
Meanwhile, Thailand’s Defence Minister Gen. Nattaphon Nakpanich announced that a joint Thai-Cambodian task force will be established within two weeks, to intensify the fight against cyber-scam operations. The move follows a bilateral General Border Committee meeting held in Malaysia.
