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PHNOM PENH: Regional governments have begun tackling the increasing threats of cybercrime by disconnecting electricity and cutting off telecommunications services to suspected cybercrime hubs.

Laos has recently become the second country, after Thailand, to enact a strict policy prohibiting telecommunications companies from extending their services internationally without prior approval from the appropriate authorities.

On February 12, the Laos’ Ministry of Technology and Communications issued a notice that local telecommunications networks cannot promote their services with foreign countries without permission from the authorities.

“Under the new directive, individuals, legal entities, and telecommunications and Internet service providers are strictly prohibited from establishing international connections without approval from the ministry.

“This measure is intended to curb fraudulent activities, including scams operated by criminal groups and call centre gangs”, said the ministry, reported the Vientiane Times.

Earlier, the government reduced electricity supply to the Tachileik district in Myanmar’s Shan State, a popular hub for call-centre scams.

Lao’s drastic measures come after Thailand suspended electricity supply, Internet services, and fuel, on February 5 to five towns bordering Myanmar to tackle the crime.

Regional security officials are tightening laws and taking stern actions to curb the rising online loan frauds, illegal gambling and fraudulent investments after criminal syndicates duped many innocent victims of their money.

In addition, other criminal activities, like human trafficking of young workers who are brought in to work in scam centres and distribution of narcotics have also increased.

A UN Office on Drugs and Crime (UNODC) report from last October revealed that financial losses were estimated to be between RM80 million (US$18 billion) and RM164.3 million (US$37 billion) from scams targeting victims in East and Southeast Asia in 2023 alone. Many of these losses were linked to scams perpetrated by organised crime groups based in Southeast Asia.

“Organised crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing governments’ capacity to contain it,” said UNODC Regional Representative for Southeast Asia and the Pacific Masood Karimipour.

“Leveraging technological advances, criminal groups are producing larger scale and harder to detect fraud, money laundering, underground banking and online scams.

“This has led to the creation of a criminal service economy and the region has now emerged as a key testing ground for transnational criminal networks looking to expand their influence and diversify into new business lines,” he said.