UN: More and more people are being forced into online fraud

Jonas Cullberg/TT 

Published 12:07

          

         Workplaces in a "fraud center" in O'Smach, Cambodia, after a raid in April. Photo: Sakchai Lalit/               AP/TT

More and more people are being trafficked and forced to work in online fraud in Southeast Asia, the UN warns. At the same time, the proceeds from the fraud are growing sharply.

Myanmar is introducing the death penalty to try to stop the problem - but critics doubt the effect.

People are lured to Southeast Asia through false advertisements on social media. They are promised good salaries for jobs in customer service or IT support. But once there, their passports and phones are confiscated. They are locked up and forced under surveillance and threats to try to scam online users in other countries of their life savings through romance scams and fraudulent investments in cryptocurrency.

The number of people being trafficked into online fraud for criminal groups is rising sharply, warns the UN migration agency IOM. Around 300,000 people from over 80 countries are being exploited in the fraud. The victims often come from countries such as Bangladesh, Indonesia, India, Kenya and Ethiopia.

The border areas around the Mekong River, particularly in Myanmar and Cambodia, have emerged as a hub for the activity.

“The problem is growing because political elites in these countries continue to support and protect criminal organizations,” says Mina Chiang, founder of the UK-based anti-trafficking organization Humanity Research Consultancy.

“In Cambodia, deep-rooted corruption has allowed these operations to flourish, and in Myanmar, fraud has become a major source of income for the military junta.”

Bigger than drug trafficking

Last year, online fraudsters stole between $88 billion and $114 billion from people in East Asia, Southeast Asia, Australia and New Zealand, according to new figures from the United Nations Office on Drugs and Crime (UNODC).

The amount has more than tripled since 2023. Online fraud has become more profitable than the global drug trade, according to estimates.

The operations are often carried out in “fraud centers” – large office complexes behind walls and barbed wire with armed guards. The facilities resemble cities with everything from restaurants and grocery stores to casinos and karaoke bars, which the fraudsters are allowed to visit as rewards. But those who fail to swindle enough money during the up to 19-hour workdays are tortured, beaten and sexually assaulted.

Advertising services

AI translations have made it easier to scam people in different countries, but scammers are also advertising for people who speak languages ​​like German, Polish, Spanish – and Swedish. Some of those involved in the scams have applied for the job themselves, and have not been scammed.

Mina Chiang shows a post in a Telegram group where people are advertising their services to take jobs at scammers. A young woman posts a video clip in English with a Norwegian accent in which she says that she is 27 years old, has experience working as a model and in “phone work” and that she speaks English, Norwegian, Swedish, Thai and Lao. Her presentation says that she is based in Phnom Penh, Cambodia, and that she can use AI filters when talking to her victims.

“This is probably about someone advertising their services to work on romance scams,” says Mina Chiang.

Facing the death penalty

Chinese crime syndicates are the main force behind the fraud industry in Southeast Asia, according to the UNODC. Last week, the EU imposed sanctions on the multi-billion dollar Prince Holding Group and its Chinese CEO Chen Zi, who are accused of building an empire of fraud centers in Cambodia and Myanmar. Cambodia extradited him to China in January.

Following pressure from several countries, including the United States and Britain, Cambodian authorities say they are cracking down on the fraud industry. In Myanmar, parliament recently approved a new law against online fraud, which allows for severe penalties – including the death penalty – for those who use “violence, torture and deprivation of liberty” to force someone to commit online fraud.

But critics say the crackdown will not stop the fraud.

“There are strong indications that government officials are directly benefiting from the fraud, including through their ownership of shares in the fraud centers,” says Mina Chiang.

“The crackdowns are chaotic and resourceful criminals can quickly adapt, move their operations and continue with them elsewhere.”

Facts

Turnovers in the billions

Victims of international online fraud in East Asia, Southeast Asia, Australia and New Zealand lost between US$88 billion and US$114 billion in 2025, according to the United Nations Office on Drugs and Crime (UNODC). The figures do not include victims from the rest of the world.

The scale has increased enormously in recent years. As recently as 2023, losses in the same region were estimated at between US$18 billion and US$37 billion.

The worst-hit in the region are residents of China, South Korea and Taiwan, according to the UN report.

Source: UNODC