UN Agency: Southeast Asia Recommended to Criminalize Unlicensed VASPs to Combat Cyber Fraud

On October 8, the United Nations Office on Drugs and Crime (UNODC) released a report calling on Southeast Asian countries to criminalize the unauthorized operation of money service businesses or virtual asset service providers (VASPs). The report notes that some VASPs, including those with links to known criminals, are facilitating transactions for fraudulent organizations and high-risk gambling sites. UNODC warns that fraudsters are diversifying their modus operandi and utilizing emerging technologies such as artificial intelligence. Investigations have found that fraudulent tactics have expanded to include identity impersonation, false recruitment, asset recovery scams and targeted approval phishing. In addition, fraudsters are accelerating their use of artificial intelligence and deep forgery techniques to optimize their criminal operations.