Scam centers linked to Asian organized crime groups are reportedly emerging near Australia, particularly in Timor-Leste. These operations are exploiting relaxed regulations to expand their illegal activities and money laundering schemes. The United Nations Office on Drugs and Crime (UNODC) issued a warning following a raid at a hotel in Oecusse-Ambeno, Timor-Leste, in late August.

The UNODC's report highlights that these scam operations, which have proliferated in Southeast Asia over the past five years, are estimated to cost victims around $60 billion annually. In countries like Cambodia, Myanmar, and Laos, primarily Chinese criminals have been running call-center-style scams from remote, walled compounds. They are increasingly using advanced technologies, such as AI-driven deepfake face-swapping, to enhance their fraudulent schemes, often involving fake property investments.

As law enforcement in Southeast Asia and China disrupt these operations, scammers are moving closer to Australia. The UN noted that the situation in Timor-Leste mirrors the early stages of the scam crisis seen in Mekong countries and the Philippines. Once organized crime infiltrates a region, it often becomes a hub for cyber fraud, drug trafficking, and human trafficking.

Oecusse-Ambeno was designated as a free trade zone in December 2024, attracting organized crime groups almost immediately. Authorities detected suspicious activities shortly after, uncovering evidence such as SIM cards and Starlink devices, which the UN identified as indicators of online scam activity. Financial crime expert Anton Moiseienko from the Australian National University explained that areas like Oecusse-Ambeno are appealing to organized crime due to their looser regulations and increased commercial activity. "This makes it easier for overseas criminal groups to establish a foothold in the jurisdiction while concealing their criminal operations," he said.

In a press release, Oecusse-Ambeno promoted itself as Timor-Leste's hub for digital innovation, sustainable tourism, and green energy. This positioning likely attracted the attention of scam operators, according to Moiseienko. Despite a crackdown on scams, Australians lost nearly half a billion dollars to fraud last year, according to the Australian Competition and Consumer Commission (ACCC).

The UNODC reported that during the raid in Oecusse-Ambeno, authorities detained about 30 foreigners from Indonesia, Malaysia, and China who lacked work permits. It remains unclear whether these individuals were victims of trafficking. Some had university degrees, indicating a trend toward the professionalization of these scam operations.

The UNODC also revealed that a company involved in offshore online gambling, owned by a Cambodian businessman with ties to the notorious triad leader Wan Kuok Koi, also known as "Broken Tooth," was active in Oecusse-Ambeno. Koi has been sanctioned by the U.S. for his criminal activities, which include connections to online fraud and illicit finance across Southeast Asia. The UNODC stated that the network in Oecusse-Ambeno is linked to Koi's ventures, which have historically intersected with online scams.

The report noted that criminal groups are using shell companies and professional services to hide their operations, embedding illicit activities within legitimate business frameworks. In 2023, the number of scams in Australia reached a record high, with victims losing nearly $3 billion. This figure dropped to about $2 billion last year.

The Australian Federal Police (AFP) emphasized that Australia remains a significant target for cybercriminals due to its relative prosperity and the trusting nature of its citizens. The AFP collaborates with international authorities to combat high-level transnational organized crime syndicates targeting Australians. They advise individuals who suspect they have fallen victim to a scam to report it to the police and the ACCC's ScamWatch, and to contact their financial institutions if they notice unusual account activity.