The United Nations Office on Drugs and Crime (UNODC) has warned that East Timor has become the latest hotspot for scam centre operations plaguing Southeast Asia and beyond.
The UN issued an official warning on Thursday that transnational organised crime networks have infiltrated East Timor’s Special Administrative Region of Oecusse Ambeno through foreign investment schemes.
Oecusse is an enclave of East Timor that lies entirely within Indonesian territory and is bordered by the Savu Sea.
The government established a digital free trade zone there in December 2024, but a law enforcement raid in August points to emerging scam centre activity, according to the UNODC.
“Analysis links these operations to entities associated with convicted cybercriminals, offshore gambling operators, and triad-linked networks,” the UNODC said in a statement on Thursday.
The raid on an Oecusse hotel produced SIM cards and Starlink satellite devices that match a pattern of activity found in scam centres across Southeast Asia, the UNODC said.
They also found links to China’s 14K Triad criminal group – synonymous with online scam activity in Southeast Asia – and scam compounds in Cambodia, the UNODC said.
Criminal groups typically take advantage of “special economic zones” that are designed to lure foreign investment by setting up criminal enterprises through shell companies.
These enterprises earn billions through varying schemes like illegal offshore gambling, online romance scams, or long-term investment fraud.
They also engage in human trafficking, luring workers from around the world with the promise of employment, but instead hold workers captive and force them to carry out criminal activity.
The Associated Press news agency reported that 30 workers from Indonesia, Malaysia and China were arrested at the scene in Oecusse.
The UNODC said it is still unknown whether workers were victims of trafficking or complicit in criminal activity, although several individuals had university-level qualifications in information technology.
Some individuals also appeared to have taken advantage of “citizenship by investment” schemes and held multiple passports, which the UNODC said could be used to evade law enforcement.
Increased media attention and law enforcement at scam centre hotspots have pushed criminal groups to find new venues like East Timor, the UNODC said.
“Criminal groups are exploiting shell companies, professional services, and multiple passports to evade detection, while embedding illicit operations within legitimate investment frameworks.
“This trend underscores the resilience and adaptability of the scam centre industry, and the risks posed when emerging economies become targets,” the UNODC added.
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