Cyber Scam Losses in East and Southeast Asia Reach USD 37 Billion

The United Nations Office on Drugs and Crime (UNODC) has revealed that financial losses suffered by the public due to scams have reached a staggering USD 37 billion, equivalent to approximately IDR 662.3 trillion. This figure is based on a study of victims in the East and Southeast Asian regions. “The latest UNODC study estimates that in East and Southeast Asia, losses from cyber scams have reached more than USD 37 billion, with Southeast Asia emerging as a hub for industrial-scale scam operations. This impact is now being felt in Indonesia,” said UN Resident Coordinator in Indonesia, Gita Sabharwal, at a seminar on scams held by the Financial Services Authority (OJK) and UNODC in Central Jakarta on Monday. The study indicates that one in four Indonesian consumers admits to having lost money due to fraud. Behind every scam case, Gita noted, there is an individual whose trust has been abused, families who have lost their hard-earned savings, business operators experiencing operational disruptions, and entrepreneurs who have lost capital to grow their businesses. “Beyond the financial loss, every successful scam erodes public trust in digital financial services and weakens the foundation of trust that underpins financial inclusion,” she added. Gita stressed that maintaining public trust is crucial for authorities, including the OJK. The OJK is expected to undertake more massive efforts to eradicate fraud, particularly through preventive measures to curb scam cases in the financial services sector. “One of the clearest lessons emerging globally is that the fight against scams must begin with prevention,” she said. She added that banks, digital financial service providers, and financial technology (fintech) companies hold a very strategic position, as they are often the first to detect emerging threats, identify mule accounts, recognise suspicious transaction patterns, and spot increasingly widespread new crime modus operandi. The next lesson, Gita stated, is the importance of collaboration. Financial crime thrives in the gaps between jurisdictions, authorities, and institutions. In response to this challenge, last year member states agreed on the Hanoi Convention Against Cybercrime, which serves as the first global legal framework for international cooperation in combating cybercrime.