The United Nations (UN) Office on Drugs and Crime (UNODC) has called on Southeast Asian regions to tighten their enforcement actions against unlicensed crypto exchanges. Interestingly, the plea appeared in a release document making rounds in the crypto space.
According to the publication, Virtual Asset service providers (VASP) without operational licenses have links to fraudulent networks that facilitate cyber crimes, gambling operations, drug trafficking, human exploitation, and other associated global menace. Hence, it becomes crucial that relevant authorities take the right enforcement actions to prevent financial crime havoc on unsuspecting citizens.
Pig Butchering and Other Scamming Schemes Gaining Prominence
The UNODC described several methods by which fraudsters operate, spotlighting "Pig Butchering" as one of the most common. Notably, the malicious actors present themselves as friendly and reliable to establish an enabling environment for selling their fraudulent ideas to their targets.
Job scams and impersonation have also made innocent individuals victims of scamming operations. Interestingly, about 220,000 indigenes of Myanmar and Cambodia have been extorted because of unrealistic Job offers.
With Artificial Intelligence (AI) models emergence and spiking adoption, phishing attacks have surged because of uncontrolled widespread manipulation of modern technology. In September 2024, about $46.7 million disappeared from rightful custodians because of AI-enabled phishing projects
UNODC’s Recommended Interventions to Curb Unlicensed Crypto Exchange Crimes
To mitigate the unscrupulous attacks, UNODC presented some crucial interventions Southeast Asian authorities must adopt. In addition to disabling operations of digital platforms lacking registered licenses, the agency suggested subjecting law enforcement agencies to rigorous training that will equip them with the right skills to rapidly identify and tackle scamming strategies regardless of the complexity.
Additionally, the UNODC cited the need to recruit cybersecurity experts. Interestingly, they will aid in checking and regulating cryptocurrency platforms since most recent crimes recorded employ digitalized technologies.
Advanced investigation and surveillance of different sectors affected by fraudulent acts remain crucial aspects of investigational procedures. Hence, enforcement agencies must take such processes seriously to forestall reoccurrences.
Furthermore, strict adherence to international law enforcement corporations regulating digital trading activities will create a rigid environment that frowns at cyber theft and associated criminal activities.
