UN Releases Report on Cyber Crime in Southeast Asia

The United Nations Office on Drugs and Crime (UNODC) has released its second report, titled 'Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation: A Shifting Threat Landscape on cybercrime in Southeast Asia', highlighting the growing role of Telegram in facilitating large-scale illicit activities.

According to the report, criminal networks in the region are using the platform to trade hacked data, such as credit card information and passwords, as well as sell cybercrime tools like malware and deepfake software.

While the UNODC's earlier report in January focused on Tether's economic impact in the region, this latest report shifts its criticism towards Telegram, emphasizing the app’s role in the convergence of cyber-enabled fraud, underground banking, and transnational organised crime.

Southeast Asia Sees Growing Cyber Crime with Telegram as its Core

Cyber-enabled fraud in Southeast Asia resulted in losses between $18 billion and $37 billion in 2023, much of it tied to organised crime.

According to the report, this scale of activity suggests growing professionalisation within these criminal networks:

“Criminals are no longer required to handle their own money laundering, coding malware, or stealing sensitive personal information […] Instead, these key components can be purchased from service providers in underground markets and forums, often at very accessible prices.”

At the heart of this is Telegram, which the report highlights as a key platform for underground markets increasingly linked to transnational crime.

Criminal groups, particularly Chinese syndicates, are using trafficked labour to run operations from fortified compounds, circulating malware, generative AI, and deepfakes.

These schemes, which generate an estimated $27.4 to $36.5 billion annually, target victims worldwide with a range of fraudulent activities, including crypto scams, data theft, and more.

The report continued:

“There is strong evidence of underground data markets moving to Telegram.”

Telegram's encrypted messaging and large group capabilities are identified as major enablers for these illicit operations.

The report also uncovered more than ten providers of deepfake software catering to these criminal groups.

Investigations into the platform's role in online sex crimes and data leaks continue in countries like South Korea and India, where the platform has been linked to the spread of deepfake pornography.

South Korea, in particular, has seen widespread public outrage following the discovery of private Telegram groups sharing explicit deepfakes of female celebrities.

The UN report also called out Tether and TRON for their roles in facilitating illicit activities.

It said:

“Authorities in East and Southeast Asia […] continue to report that stablecoins, and particularly Tether (USDT) on the TRON (TRX) blockchain, represent the preferred choice for Asian crime syndicates engaged in cyber-enabled fraud and money laundering operations.”

Telegram's Bad Streak

The recent UNODC report adds to the growing challenges faced by Telegram CEO Pavel Durov, who was arrested in France on 24 August on charges tied to illegal activities conducted on the platform.

French authorities have charged Durov with complicity in criminal activities, refusal to cooperate with law enforcement, money laundering, criminal conspiracy, and offering encryption services without proper authorization.

If convicted, Durov could face up to 10 years in prison and a fine of €500,000 ($550,000).

The charges stem from a new French law, with no international equivalent, which may set a precedent for platform liability.

While Durov has been released on bail, investigations continue into Telegram's role in enabling illegal activities and harmful content.

In response, Durov announced that Telegram would comply with legal requests by providing authorities with users' IP addresses and phone numbers.

He also pledged to remove certain features that have been exploited for illicit purposes.

With that said, can the popular messaging platform catch a break or are more troubles already at its doorstep?