Criminal networks in Southeast Asia flourish in Telegram's 'underground markets': UN report

Powerful criminal networks in Souast Asia extensively use messaging app Telegram which has enabled a fundamental change in way organised crime can conduct large-scale illicit activity, United Nations said in a report on Monday.

report represents latest allegations to be levied against controversial encrypted app since France, using a tough new law with no international equivalent, charged its boss Pavel Durov for allowing criminal activity on platform.

Hacked data including credit card details, passwords and browser history are openly tred on a vast scale on app which has sprawling channels with little moderation, report by United Nations Office for Drugs and Crime (UNODC) said.

Tools used for cybercrime, including so-called deepfake software designed for fraud, and data-stealing malware are also widely sold, while unlicensed cryptocurrency exchanges offer money laundering services, according to report.

"We move 3 million USDT stolen from overseas per day," report quoted one as saying in Chinese.

re is "strong evidence of underground data markets moving to Telegram and vendors actively looking to target transnational organized crime groups based in Souast Asia," report said.

Souast Asia has emerged as a major hub for a multibillion-dollar industry that targets victims across world with fraudulent schemes. Many are Chinese syndicates that operate from fortified compounds staffed by trafficked workers. industry generates between $27.4 billion to $36.5 billion annually, UNODC said.

Russian-born Durov was arrested in Paris in August and charged with allowing criminal activity on platform including spre of sexual images of children. move has put spotlight on criminal liability of app providers and also triggered debate on where freedom of speech ends and enforcement of law begins.

Telegram, which has close to 1 billion users, did not immediately respond to a request for comment.

Following his arrest, Durov, who is currently out on bail, said app would hand over users' IP dresses and phone numbers to authorities making legal requests. He also said app would remove some features that have been abused for illegal activity.

Benedikt Hofmann, UNODC's deputy representative for Souast Asia and Pacific, said app was an easily navigable environment for criminals.

"For consumers, this means ir data is at a higher risk of being fed into scams or or criminal activity than ever before," he told Reuters.

report said sheer scale of profits earned by criminal groups in region h required m to innovate, ding y h integrated new business models and technologies including malware, generative artificial intelligence and deepfakes into ir operations.

UNODC said it h identified more than 10 deepfake software service providers "specifically targeting criminal groups involved in cyber-enabled fraud in Souast Asia".

Elsewhere in Asia, police in South Korea - estimated to be country most targeted by deepfake pornography - have reportedly launched an investigation into Telegram that will look at wher it abets online sex crimes.

Reuters also reported last month that a hacker h used chatbots on Telegram to leak data of top Indian insurer Star Health, prompting insurer to sue platform.

Using chatbots, Reuters was able to downlo policy and claims documents featuring names, phone numbers, dresses, tax details, copies of ID cards, test results and medical diagnoses.