High-Tech Havoc: UN Report Highlights Surge in ‘Pig Butchering’ Scams Using AI and Deepfakes in Southeast Asia

To go back to this article, navigate to My Profile and then click on Saved stories to view them.

High-Tech Evolution in "Pig Butchering" Scams Raises Alarm

The rise of digital scamming in Southeast Asia, particularly the investment fraud known as “pig butchering,” has prompted a stark warning from the United Nations Office on Drugs and Crime (UNODC). According to a detailed report released this week, there's a concerning expansion in this illicit activity. While many online frauds have historically depended on manipulating individuals into voluntarily parting with their money, there's a growing trend of scammers employing advanced technologies. Experts are increasingly raising concerns over the use of artificial intelligence to generate convincing content and deepfakes, enhancing the scope and impact of these scams. The UN's report underscores the shift towards these sophisticated technologies, highlighting the escalating severity of the threat.

Cybercriminals are diversifying their tactics by not only acquiring pre-written scripts for interacting with their targets or using ready-made templates for fraudulent websites but also increasingly leveraging AI-driven platforms to generate multilingual communications and utilizing deepfake technology to produce realistic images or videos of fictitious individuals to deceive their targets more convincingly. Furthermore, these scammers are broadening their toolkit to include technologies capable of emptying out individuals’ digital currency wallets, altering transaction logs to mislead individuals into transferring digital currency to incorrect addresses, and exploiting vulnerabilities in smart contracts to commit theft. In some instances, they are even investing in Elon Musk's Starlink satellite internet service to support their malicious operations.

"John Wojcik, a regional analyst for the UNODC, informed WIRED that nimble criminal organizations are adopting advanced technologies more quickly than expected. This acceleration is fueled by the emergence of new digital marketplaces and service providers, which have significantly boosted the illegal service sector," he explains. "This progress has broadened the range and effectiveness of cyber-enabled fraud and cybercrime. Furthermore, it has reduced the entry hurdles for criminal groups that formerly did not possess the technical expertise to leverage more complex and lucrative techniques."

For an extended period, individuals connected to China have been involved in the human trafficking of a vast number of people into large compounds located in Southeast Asia. Within these facilities, victims are often compelled to engage in fraudulent activities, held captive, and subjected to physical abuse if they resist orders. It's estimated that over the past five years, approximately 200,000 individuals from at least 60 different nations have been forcibly taken to these enclosures, predominantly situated in Myanmar, Cambodia, and Laos. Nonetheless, investigations by WIRED have revealed that these criminal ventures are expanding their reach worldwide, with the establishment of scamming networks now being identified in regions such as the Middle East, Eastern Europe, Latin America, and West Africa.

Predominantly, these criminal syndicates have engaged in schemes known as pig butchering frauds, wherein they first form close bonds with individuals before presenting a so-called "investment opportunity" and soliciting funds. It's estimated that such scams have bilked individuals out of approximately $75 billion. Beyond pig butchering, a UN report highlights that in Southeast Asia, criminal groups are also orchestrating employment frauds, impersonating law enforcement, conducting asset recovery frauds, virtual kidnappings, sextortion, defrauding through loans, compromising business emails, among other illegal activities. According to estimates by UN officials, these criminal networks have generated as much as $37 billion in the past year alone. Not surprisingly, the substantial profits gained from these illicit activities are enabling the fraudsters to broaden their scope and refine their operations, integrating advanced infrastructure and technology to enhance their efficiency and increase their predatory success.

For instance, fraudsters typically face limitations due to their proficiency in various languages and the challenge of maintaining dialogues with potentially hundreds of victims simultaneously across different languages and dialects. Yet, advancements in generative AI, particularly with the introduction of writing aids like ChatGPT in the recent two years, have simplified the process for these criminals to overcome linguistic obstacles and produce the necessary material for their fraudulent activities.

According to a report from the United Nations, artificial intelligence has the potential to enhance phishing schemes by automating the process of capturing victims, generating counterfeit identities and digital personas, as well as devising tailored scripts to deceive individuals during communication in various languages. The report highlights that these advancements have broadened the reach and effectiveness of cyber fraud and crime, simultaneously reducing the entry obstacles for criminal groups that formerly did not possess the necessary technical expertise to leverage advanced and lucrative techniques.

Stephanie Baroud, an expert on criminal intelligence with a focus on human trafficking at Interpol, has highlighted the increasing role of AI in enhancing the effectiveness of fraud schemes, particularly in the context of pig butchering scams. In a discussion with WIRED prior to the release of a report by the UN, Baroud pointed out that the advertisements used by criminals to entice victims into scam operations were initially crude and riddled with errors. Now, with the aid of AI, these adverts have become more sophisticated and persuasive. “AI is significantly improving the ability to craft job advertisements that seem utterly legitimate,” she remarked. “This, regrettably, is going to complicate the task of distinguishing between authentic and fraudulent advertisements.”

A major shift in the landscape of digital fraud is attributed to the emergence of deepfakes. These sophisticated AI-driven methods are becoming a tool for fraudsters, enabling them to swap faces in real-time. Utilized by con artists, particularly in romance scams originating from West Africa, this technology empowers them to alter their appearance during live interactions, convincingly masquerading as someone else. According to a report by the United Nations, this tech facilitates effortless, instant face changes and delivers high-definition video streams. For those engaged in deceptive practices, this advancement is revolutionary, as it provides a convincing means to authenticate their false identities to unsuspecting victims through photographs or live video chats.

Implementing these systems often necessitates reliable internet connections, which may be challenging to sustain in certain areas known for housing pig butchering schemes and other fraudulent activities. According to the UN, there's been a significant uptick in the confiscation of Starlink satellite dishes by law enforcement in Southeast Asia over recent months, with 80 units being taken between April and June of this year alone. During a raid in June, Thai authorities took possession of 58 Starlink units. On another occasion, officials apprehended 10 Starlink dishes and nearly 5,000 preregistered SIM cards as offenders were attempting to relocate their operations from Myanmar to Laos. Starlink has yet to provide a comment on the matter in response to an inquiry from WIRED.

"Clearly, employing actual individuals has proven effective for them, yet incorporating technology might reduce costs once they acquire the necessary computing equipment," and internet access, Troy Gochenour, a volunteer at the Global Anti-Scam Organization (GASO), an American nonprofit dedicated to combating human trafficking and cybercrime activities in Southeast Asia, mentions.

Gochenour's work focuses on monitoring patterns within Chinese-speaking Telegram groups that are associated with executing pig butchering frauds. He notes a growing trend of individuals seeking to become AI models for fraudulent material.

In addition to utilizing AI for malicious purposes, cybercriminals are also increasingly turning to other technical methods to carry out their schemes. A notable tool that has gained popularity, especially in Southeast Asia, is known as "crypto drainers." These are a form of malware aimed at siphoning off funds from individuals' cryptocurrency wallets, directing the stolen assets to accounts under the control of the perpetrators. Crypto drainers vary in their level of complexity, but their primary purpose remains the same: to covertly transfer cryptocurrency from the victim's wallet to the attacker's. Instead of directly hijacking the victim's wallet credentials, these malicious tools often disguise themselves as legitimate services. They may mimic an existing platform or establish a convincing fake brand to lure victims. Once the victim is deceived into linking their wallet with the fraudulent service, they are manipulated into authorizing transactions. These transactions inadvertently provide the attackers with access to the victim's entire wallet contents.

Drainers have a variety of applications and can be presented in numerous ways. They might play a role in swindle schemes related to pig butchering investments or be advertised to unsuspecting targets via hacked social media profiles, deceptive phishing operations, and malicious advertising. For instance, experts at ScamSniffer released a report in December discussing how paid ads on social media and search engines were directing users to harmful sites equipped with a cryptocurrency draining feature. This operation, active from March to December 2023, is said to have defrauded over 63,000 individuals globally, amassing around $59 million.

According to researchers from the United Nations, modern scammers have evolved beyond the primitive methods of relying solely on social engineering, which involves gaining a victim's trust and sending deceptive emails or texts. Nowadays, they adopt a mixed strategy to maximize their effectiveness and profit. While not often creating complex malware on their own, scammers are frequently seeking to employ such harmful software. This demand has led to malware creators adjusting or developing new hacking tools for specific scams, such as "pig butchering."

Experts indicate that fraudsters are employing tactics such as infostealers and remote access trojans to install backdoors in a victim's system, paving the way for further malicious activities. Additionally, these criminals are increasingly leveraging deceptive smart contracts, which, while seemingly setting up specific transactions, in reality, execute additional unauthorized actions. "The proliferation of infostealer logs and the black market for data have been pivotal in the continued growth of these activities, with the availability of vast amounts of confidential information acting as a significant driver," says Wojcik of the UNODC.

The shift in strategies is crucial as worldwide police forces rush to combat online fraud. However, this is merely a fragment of a much larger, more pressing, and grim scenario for individuals subjected to forced labor and those affected by these criminal acts.

UN representatives have highlighted in their report that there's a growing evidence of an irreversible trend where criminal organizations have the flexibility to transfer and manipulate their operations and financial dealings across borders as required. This development is quickly surpassing the abilities of national governments to control it. The report warns that not taking immediate action against this criminal network could have dire impacts on Southeast Asia and beyond.

Recommended for You…

Direct to your email: A curated selection of WIRED’s most fascinating and unusual tales

Elon Musk poses a threat to national security

Interview: Meredith Whittaker Aims to Challenge Capitalist Ideals

What's the solution to a dilemma such as Polestar?

Invitation: Be part of The Grand Conversation happening on December 3rd in San Francisco.

Additional Content from WIRED

Evaluations and Manuals

© 2024 Condé Nast. All rights reserved. Purchases made via our website may result in a commission for WIRED, stemming from our affiliate relationships with various retail partners. Reproduction, distribution, transmission, storage, or use of the content from this website is strictly prohibited without explicit written consent from Condé Nast. Ad Choices

Choose a global website