Fraud is emerging as an increasingly sophisticated form of organised crime, with criminals exploiting technology, artificial intelligence and international networks to steal billions of dollars from individuals and businesses, according to the UN Office on Drugs and Crime (UNODC).
The UN agency defines fraud as the intentional deception of a person or organisation by a criminal seeking to obtain money or another item of value. Those involved range from individuals pursuing quick profits to highly organised criminal groups operating across borders.
The scale of the threat is reflected in international law enforcement data, with UNODC reporting that 85% of INTERPOL Red Notices issued by member countries in 2022 and 2023 were linked to financial fraud.
Victims of cyberfraud in the United States lost $16bn(Sh2.064 trillion) in 2024, while losses in East and Southeast Asia reached as much as $37bn(Sh4.773 trillion) in 2023. In the European Union, payment fraud losses stood at €4.2bn(Sh541.8 billion) in 2024, the agency explained.
UNODC says technology has enabled criminals to recruit co-offenders from around the world and establish sophisticated networks dedicated to fraud.
“Technology has created new opportunities for fraudsters to form organized criminal groups from a global pool of potential co-offenders. Some of these groups exist solely to commit fraud. However, many others engaged in other kinds of crime – such as drug trafficking or human trafficking – diversify into fraud, attracted by the potential for staggering profits,” it noted.
Common forms of organised fraud include investment scams, employment fraud, romance or relationship scams and identity theft. Criminals may also impersonate trusted individuals or organisations or target businesses.
Artificial intelligence is making some of these schemes harder to detect. Generative AI can produce deepfake videos, images and audio, while AI chatbots can help criminals communicate with victims in multiple languages.
“Generative artificial intelligence (AI)– capable of producing ‘deepfake’ videos, images, and audio – together with AI chatbots, have made it easier than ever to impersonate people and manipulate victims into unwittingly transferring money to fraudsters,” UNODC said.
The agency explained that scam compounds in Southeast Asia were using multilingual chatbots to communicate with several victims at once, while other criminal groups were creating fake digital identities complete with photographs, social media profiles and identification documents.
Fraudsters are also using a “cybercrime as a service” model, allowing organised groups to pay specialists for phishing, malware and money-laundering services.
The proceeds are subsequently moved through money mules, shell companies, property purchases and, increasingly, cryptocurrency exchanges.
UNODC is working with governments, businesses and civil society to strengthen legislation, prevention strategies, training and international cooperation.
The agency supports investigations and operations targeting organised fraud networks, including efforts to trace cryptocurrency transactions and disrupt scam centres in Southeast Asia.
It also works under international legal frameworks including the UN Convention against Transnational Organized Crime and the newer UN Convention against Cybercrime.
UNODC said international cooperation remains essential as fraud networks become increasingly sophisticated and operate across multiple jurisdictions.
“Fraud doesn’t always look like a crime. Sometimes, it looks like a message. A call. An opportunity that feels too good to miss,” the agency said.