The scam industry in East Asia has caused $114 billion in damages: the UN records criminal franchising
The scale of organized fraud in East and Southeast Asia, as well as in Australia and New Zealand, has reached astronomical levels. Based on data from the latest report by the United Nations Office on Drugs and Crime (UNODC), I estimate the total damage from scam operations in 2025 ranged from $88.3 to $114.1 billion. This is not just statistics—it is evidence of a profound transformation of the region's criminal economy.
The UNODC methodology accounts not only for officially recorded losses but also for the estimated share of victims who do not report to authorities. For comparison, in 2023, the same indicator was estimated at $18–37 billion. A roughly threefold increase in two years is not a coincidence but the result of a systemic restructuring of criminal networks. Among countries with the highest official losses in 2024–2025, China ($5.1 billion), the Republic of Korea ($3.5 billion), and Taiwan ($2.8 billion) lead the list.
Criminal franchising and the role of cryptocurrencies
The UNODC describes the situation as a "restructuring of the regional criminal economy." Disparate syndicates have turned into a cross-border network with shared infrastructure for fraud, money laundering, human trafficking, and migrant smuggling. UNODC Regional Representative Delphine Schantz compared this model to corporate franchising. According to her, specialized departments for money laundering, human trafficking, and data collection are connected to a single service network.
The report pays special attention to cryptocurrencies. The UNODC explicitly states that USDT on the TRON network has become the "settlement infrastructure" for criminal groups. This combination has created a parallel financial system for nearly instant, cheap, and pseudonymous cross-border transfers. Through P2P platforms, over-the-counter brokers, and underground banking networks, criminals convert fiat into stablecoins and back, bypassing banking controls. UNODC Lead Analyst Inshik Sim noted that the scale and complexity of this criminal economy "outpace existing countermeasures."
AI, satellites, and global recruitment
Criminal groups are actively using generative AI, deepfakes, encrypted messengers, and satellite communications, including Starlink. These tools lower the technical barrier for complex fraud schemes and enable operations in hard-to-reach areas. The use of legitimate advertising networks to spread malware grew by 42% year-over-year in 2025.
The geography of recruitment is also expanding. People from at least 80 countries have been identified in scam compounds in the region. Job advertisements linked to fraud centers include requirements for knowledge of German, Polish, Spanish, French, and other European languages. This indicates that operators are seeking employees and victims far beyond Asia.
My comment: The $114 billion figure is just the tip of the iceberg. The actual damage could be significantly higher, given that many victims do not report losses due to shame or fear. Cryptocurrencies, especially stablecoins, have become an ideal tool for such schemes, providing speed and anonymity. Until law enforcement learns to effectively track and confiscate digital assets, these networks will continue to grow. As practice has shown, pressure on individual platforms only forces them to change jurisdictions and rebuild infrastructure through new nodes.