United Nations: Southeast Asian crime groups embrace AI, Telegram becomes primary platform for money laundering scams

According to the latest report from the United Nations Office on Drugs and Crime (UNODC) UNODC report, Telegram has become the primary platform for illegal transactions by organized crime groups in Southeast Asia, engaging in illicit activities such as money laundering, selling personal information, and data theft using encrypted cryptocurrencies. They also expand their criminal activities using Generative AI (GenAI) and Deep Fake technologies.

Telegram founder Pavel Durov is facing serious charges: aiding illegal transactions and organized crime, with a maximum sentence of ten years in prison.

Unlicensed VASPs Facilitate Money Laundering Activities

The UNODC pointed out that there are many unregulated Virtual Asset Service Providers (VASPs) on Telegram offering "Off-ramp" services to convert cryptocurrencies into fiat currencies, especially focusing on exchanging USDT marked as illegal. These providers claim to process up to 3 million USDT daily and conduct transactions through over-the-counter (OTC) platforms, setting lower customer identity verification KYC standards to assist in money laundering activities, particularly in border areas like the Mekong River region in Southeast Asia.

Note: Off-ramp refers to the service of converting cryptocurrencies into fiat currencies, while On-ramp is the opposite, converting fiat currencies into cryptocurrencies.

Money Laundering Process by Groups:

1. Deposit funds into gambling accounts through methods like credit cards, debit cards, cryptocurrencies, prepaid cards, and checks, then introduce illegal funds into the financial system.
2. Disguise the source of funds through multiple bets, transfers, and withdrawals within the gambling platform, concealing the fund's origin.
3. Extract laundered funds for use in legitimate transactions, including purchasing assets or transferring funds to other accounts, and processing fund sources across multiple online gambling platforms.

FATF Progress Report on Anti-Money Laundering Standards for Virtual Assets: 75% of jurisdictions have not done well, rampant abuse of crime

AI Technology and Telegram Combination Becomes the Preferred Method for Criminal Groups

The UNODC pointed out that criminal groups in Southeast Asia are currently using emerging technologies such as GenAI and Deep Fake to expand their criminal methods. These groups generate false identities using these technologies for illicit activities including selling personal information, stealing cryptocurrency wallet information, and conducting malicious software and online crime services transactions through Telegram. The chart below shows that from February 2024 to August 2024, the mention of Deep Fake keywords in underground Telegram markets and forums in Southeast Asia reached up to 1,750 times.

Telegram is suspected of allowing deep fake crimes, and the South Korean police have launched an investigation

Southeast Asia has become a global scam center earning billions of dollars annually, mostly controlled by Chinese criminal groups. These groups have well-protected bases where most employees are illegal workers from around the world. The UNODC estimates that the scam industry in Southeast Asia generates annual revenues of up to $27.4 billion to $36.5 billion.

Telegram founder Pavel Durov is currently facing charges of assisting in illegal transactions and organized crime and has been restricted from leaving Paris due to a serious crime indictment in France.