Jan 16, 2024 12:00:00

United Nations warns that virtual currency Tether is facilitating cyber fraud in Asia such as 'pig killing scam'

The United Nations Office on Drugs and Crime (UNODC), which was established to combat organized crime such as money laundering, announced on January 15, 2024 that online casinos and virtual currencies are accelerating money laundering in East Asia and Southeast Asia. , reported that it is facilitating transnational organized crime, including the romance scam 'Pig Killer .'

Casinos and cryptocurrency: major drivers of money laundering, underground banking, and cyberfraud in East and Southeast Asia
https://www.unodc.org/roseap/en/2024/casinos-casinos-cryptocurrency-underground-banking/story.html

UN implicates crypto in booming illicit economies of Southeast Asia
https://cointelegraph.com/news/un-implicates-crypto-illicit-economies-southeast-asia

The recently published UNODC report (PDF file) points out that online casinos and similar businesses are being used by organized crime groups as a means to launder money and virtual currency.

Particularly gaining momentum are virtual currency scams known as ``pig killers,'' in which people are defrauded of virtual currency by using the promise of romance, and ``task scams,'' in which people participate in online crimes by pretending to be remote workers. This includes fraud in which people pretend to be employees of an organization and defraud them of money.

In addition, an examination of the cases investigated revealed that illegal online casino operators are diversifying and expanding into areas such as cyber fraud and virtual currency laundering, and that the influence of criminal organizations is increasing at casino facilities. It has become clear that these attacks have spread to border areas, including the special economic zones where they are located, and areas where Myanmar's armed groups are hiding.

Jeremy Douglas, UNODC Regional Director for Southeast Asia and the Pacific, said: ``Organized criminal groups tend to congregate in areas where authorities cannot see them, and casinos and virtual currency exchanges are the areas where they are least likely to face resistance.'' 'Operations against crime syndicates in countries such as Cambodia and the Philippines have achieved some results, but criminals are taking refuge in areas where crackdowns are difficult, such as border areas.'

The following is the location of casinos in Southeast Asian countries compiled by UNODC, and it can be seen that casinos are concentrated near the borders of countries such as Myanmar and Cambodia in particular.

On illegal platforms in these regions, Tether transactions on the blockchain of the virtual currency 'TRON ' are said to be the most popular payment method. As of early 2022, there are over 340 licensed and unlicensed casinos operating in Southeast Asia, most of which have moved online. The online gambling market is said to grow to $205 billion (approximately 30 trillion yen) by 2030, with the Asia-Pacific region accounting for 37% of the growth rate from 2022 to 2026. The rise of the gambling business is becoming a major risk.

“Businesses that handle large amounts of cash, such as casinos, have long been a vehicle for illegal underground banking operations and money laundering, but with the explosion of poorly regulated online gambling platforms and virtual currency exchanges, The increase has changed the game,” Douglas said.