Warning: Telegram A Breeding Ground For Crypto Fraud, UN Says

The United Nations recently issued a surprising report stating that Telegram has emerged as a major platform for criminal networks in Southeast Asia. This encrypted chat software has become a hotspot for money laundering, fraud, and the exchange of stolen data, according to the UN. The findings show that organized crime groups are using Telegram’s features to carry out illegal activities with startling ease.

Telegram: A New Era In Crime

Based on the UN Office on Drugs and Crime (UNODC) report, these criminal enterprises generate between $27.4 billion and $36.5 billion each year. The research discusses how Telegram has changed the face of organized crime, allowing syndicates to operate with little control.

Criminals sell malware and deepfake software over the network and use it to commit fraud by trading passwords and sensitive information like credit card numbers. To give you an idea of how big these operations are, one advertisement stated that they move $3 million worth of stolen cryptocurrency daily.

The growing number of unregistered cryptocurrency exchanges on Telegram has complicated matters. These interactions provide tools that let crooks readily move dirty money. Among these networks, the UNODC has assigned Tether (USDT) as the stablecoin of choice based on its indispensable function in enabling transactions for illicit operations.

The Arrest Of Pavel Durov

The issue worsened when Telegram’s founder, Pavel Durov, was detained in Paris in August. He faces serious charges for facilitating different illicit activities on the platform, such as drug trafficking and child exploitation.

Durov said that the firm tries to increase user privacy alongside its obligations to honor legal orders by sharing user data with the authorities. Following Durov’s detention, discussions have begun on the role that tech companies should play in keeping tabs on illegal activity that takes place on their networks. The appropriate balance between user privacy and public safety is a topic of much debate.

The UN’s latest findings have significant consequences. According to the deputy representative for Southeast Asia and the Pacific of UNODC, Benedikt Hofmann, Telegram hosts the criminals in a friendly space. In other words, consumers’ data is more vulnerable than at any time in the past because it could easily be exploited for frauds or other forms of illicit activity.

Most importantly, the report indicated that the profits these crime syndicates gather through their activates thrust them to find ways to innovate even more. They now engage with the latest technologies like artificial intelligence and deepfakes in their crimes, making it very challenging to track them down. Over 10 deepfake software providers have been identified as specifically targeting criminal organizations involved in cyber-enabled fraud.

Featured image from Protos, chart from TradingView