William Hall, International Computer Hacking and Intellectual Property Attorney, U.S. Department of Justice (USDOJ).
Online scams are often perceived as small-scale digital crimes. Phishing messages, fake investment offers, and fraudulent links have become routine for internet users. However, this perception was challenged during an online session of the YSEALI CyberSafe ASEAN 2026 program.
Speaking via Zoom, William Hall, an International Computer Hacking and Intellectual Property Attorney from the U.S. Department of Justice, described a far more alarming reality. According to Hall, online scams in Southeast Asia have evolved into a transnational digital crime ecosystem that combines cybercrime, human trafficking, and large-scale money laundering through cryptocurrency.
This ecosystem poses serious risks not only to individual victims but also to regional security and fundamental human rights.
Southeast Asia at the Center of the Global Scam Network
Drawing on international law enforcement findings and global monitoring data, Hall noted that worldwide losses from online scams between 2023 and 2024 are estimated to range between USD 18 and 37 billion. Southeast Asia, particularly the Mekong region encompassing Myanmar, Cambodia, and Laos, has emerged as one of the main operational hubs.
Scams in this region are no longer run by isolated individuals. Instead, they are executed by structured criminal networks operating at scale, with clear hierarchies, defined roles, and dedicated infrastructure.
This phenomenon is often labeled as the “scam industry.” However, Hall emphasized that the term crime ecosystem is more accurate because it reflects:
- The involvement of multiple interconnected actors
- The use of both physical and digital infrastructure
- High adaptability and mobility across borders
- Operations spanning technology, finance, and human exploitation
Online scams should therefore be understood as a systemic form of organized crime rather than isolated incidents.
Scam Centers as Operational Hubs
At the core of this ecosystem are scam centers, which function as centralized operational hubs. These facilities are frequently located in former casinos, hotels, office buildings, or special economic zones, often near border areas with limited law enforcement access.
Common characteristics of scam centers include:
- Tight security with surveillance cameras and armed guards
- On-site dormitories for workers
- Corporate-style structures with scam operators, IT teams, crypto finance units, internal security, and logistics
A single scam center can involve hundreds or even thousands of people, making it a critical node in the transnational crime ecosystem.
Human Trafficking Behind the Screens
One of the most disturbing aspects highlighted by Hall is the direct link between online scams and human trafficking. Many workers inside scam centers are recruited through fake job advertisements promising positions in IT, customer service, or cryptocurrency trading.
Upon arrival, their situation changes drastically:
- Passports are confiscated
- Working hours can reach 12 to 17 hours per day
- Threats, coercion, and physical abuse are used to enforce compliance
Those who fail to meet targets are reportedly sold to other scam centers or subjected to severe punishment. These practices confirm that online scams represent not only financial crime but also a profound humanitarian crisis.
How Victims Are Trapped
During the Zoom session, Hall outlined a pattern commonly used to trap victims. The steps are systematic and repeat across regions.
- Grooming
Scammers build trust over weeks or months, often using personal data gathered from social media. - Fake Investment Offers
Victims are introduced to seemingly legitimate opportunities involving cryptocurrency, forex, gold, or exclusive platforms. - Trust Manipulation
Small withdrawals are sometimes allowed to create an illusion of legitimacy. - Financial Escalation
Victims are encouraged to invest more, take loans, sell assets, and even recruit friends or family members. - Fund Lockdown
Once large withdrawals are attempted, access is blocked and communication stops.
Cryptocurrency and Illicit Financial Flows
Financial operations form the backbone of the scam ecosystem. Cryptocurrency, particularly USDT (Tether), is widely used due to its speed, low transaction costs, and cross-border flexibility.
Typical laundering pathways include:
- Funds transferred via banks or Bitcoin
- Movement across multiple digital wallets
- Conversion into USDT
- Cash-out through informal brokers, illegal casinos, or underground money changers
While international cooperation has succeeded in freezing hundreds of millions of dollars, Hall stressed that these networks are highly resilient. When one channel is disrupted, another quickly emerges.
Major Nodes in the Scam Ecosystem
Hall referenced several major cases that illustrate the scale of this ecosystem, including:
- Huayong Group, a global money laundering network that processed billions of dollars from scam operations before being cut off from the US dollar system
- Prince Group, a transnational criminal organization operating forced-labor scam centers and facing claims totaling up to USD 15 billion
These cases demonstrate that partial enforcement actions are insufficient without dismantling the broader ecosystem.
Why Law Enforcement Alone Is Not Enough
According to Hall, relying solely on arrests and prosecutions will not solve the problem. The scam ecosystem operates across borders, exploits digital platforms, and leverages gaps in financial regulation.
Effective responses must include:
- Public education and digital literacy
- Regional and international cooperation
- Engagement with the private sector and technology platforms
- Early warning systems and shared intelligence
For Indonesia, these findings serve as a critical warning. The country faces risks both as a target for scam victims and as a potential transit point within regional cybercrime networks if awareness and safeguards are not strengthened.
As a technology and open-source organization, ATI0S views digital security as a public concern. Community-based education, capacity building, and regional collaboration are essential to confronting a rapidly evolving digital crime ecosystem.
The insights shared by William Hall during the YSEALI CyberSafe ASEAN 2026 Zoom session reveal that online scams in Southeast Asia are far more than simple fraud schemes. They constitute a transnational digital crime ecosystem that inflicts financial losses, enables human exploitation, and threatens regional stability.
Addressing this challenge requires more than technology or enforcement alone. It demands public awareness, cross-border cooperation, and active participation from civil society.
Editorial Note
This article is based on a presentation delivered by William Hall of the U.S. Department of Justice during an official Zoom session of the YSEALI CyberSafe ASEAN 2026 program. The content is intended for public education and to strengthen digital security awareness. (PA/FDLN)
