Now the U.S. Secret Service is getting involved, training law enforcement around the world to combat cryptocurrency scams. That's commendable. We need more international collaboration. Free workshops alone aren't going to cut it in Southeast Asia. We need a whole lot more.

Tech Savvy, Scam Vulnerable Region

Southeast Asia is a paradox. We’re a region with a thriving tech scene, skyrocketing mobile penetration and digital adoption. Everybody’s glued to their phones, playing apps, and more and more, playing in the crypto sandbox. This rapid embrace of technology has a dark side: it makes us prime targets for sophisticated scams. You know those TikTok ads that promise you crazy returns? They are quite literally everywhere, preying off of people’s hopes and dreams of financial freedom.

Look, that the Secret Service’s GIOC team seized close to $400 million in digital assets is truly commendable. So you can imagine that $15 billion won’t come close to covering that.

Second, we must recognize the fact that the financial literacy of many in our communities is often a barometer of oppression. They’re charting complicated fiscal waters with little to no direction. It’s akin to handing someone the keys to a high-speed, high-performance sports car and not providing them any driving instructions – a surefire formula for chaos. I think about my aunt, god rest her soul. Instead she became the victim of a “pig butchering” scam, thinking she was investing with a reputable crypto startup. She lost her entire life savings. That's the reality on the ground.

Weak Laws, Stronger Criminals

Other Southeast Asian countries, like Thailand and Malaysia, are purposefully working to regulate cryptocurrency. Yet for most of their regulatory frameworks, these conditions are still weak or entirely lacking. This is largely because it creates many loopholes that scammers can use to defraud consumers with impunity. These bad actors often work across jurisdictions. This action renders it nearly impossible for individual law enforcement agencies to do so, or to track and prosecute them effectively. It's a cat-and-mouse game where the cats are always behind and outgunned.

More from the Secret Service training, which is excellent and shows investigators how to leverage open-source tools to follow the trail of fraud. What if the scammers know that, they’re using VPNs, offshore accounts, and just all-around more sophisticated tactics? When local laws fail to treat crypto like the real property, it poses huge barriers. It’s notoriously difficult for authorities to seize and recover stolen funds.

This isn’t just a technological problem. It’s about international law, international cooperation, and the political will to act against these criminals. We cannot put this expectation on local police forces, many of which are under-resourced and under-trained, to waging such battle on their own terms.

Southeast Asia's Call To Action

Here's a Southeast Asia-specific call to action:

  • Financial Literacy Surge: Massive investment in financial literacy programs tailored to the region's diverse cultures and languages. It should be everywhere: schools, community centers, even those cheesy morning TV shows.
  • Regional Law Enforcement Alliance: A dedicated task force of law enforcement agencies across Southeast Asia, sharing intelligence and coordinating investigations. Think of it as the ASEAN version of Interpol, but focused solely on crypto crime.
  • Regulatory Overhaul: Governments need to get serious about regulating the crypto industry. Clear rules, licensing requirements, and consumer protection measures are essential.
  • Tech Partnership Power: Forge alliances with tech giants like Google, Meta, and even crypto exchanges like Coinbase and Tether, to develop AI-powered tools to detect and prevent scams. After all, they are making money off of the increased usage of crypto.
  • Cultural Sensitivity First: Scam prevention campaigns need to be culturally relevant. A one-size-fits-all approach won't work in a region as diverse as Southeast Asia.

We need to think beyond law enforcement. This National Cybersecurity Awareness Month, let’s arm ourselves with education, vigilance, and everything we need to stay safe. We must cultivate a climate in which Americans are unafraid to report scams and compassionate enough to support victims.

Indeed, Southeast Asia has the opportunity to become the global model for the responsible adoption of blockchain technology. We won’t be able to realize our long-term goals if we’re constantly battling an onslaught of fraud. Such scams erode trust and confidence in the digital economy. While the Secret Service’s required training is a good step forward, that’s only one part of a much larger puzzle. We require a detailed, multi-pronged strategy that accounts for the custom challenges presented by the region of Southeast Asia. Our future depends on it.