AI Deepfake Romance and DeepSeek Scams Trigger Millions in Losses
Criminal gangs in Southeast Asia and China used AI-generated photos and videos to commit romance fraud and other scams, causing millions of dollars in losses. Multiple countries reported surging fraud incidents enabled by AI technology, with cooperation efforts underway to combat cross-border criminal networks.
What happened
In August 2024, a man surnamed Liu in Shanghai's Minhang District reported being defrauded after meeting a woman named 'Jiao' through a short video, with whom he quickly developed a romantic relationship. 'Jiao' requested approximately 200,000 yuan under various pretexts including opening a store, purchasing inventory, and paying for a family member's medical treatment, while showing Liu forged identity documents, medical records, and invoices.
Police investigation revealed the fraud was perpetrated by a criminal group using AI-generated photographs and videos, with total fraud amounts exceeding 2 million yuan. Thai authorities reported that fraud calls and text messages doubled in 2024, reaching a record 168 million incidents, with advanced AI generation technology cited as enabling increasingly complex fraud schemes across Southeast Asia.
Reported impact
Liu was defrauded of nearly 200,000 yuan and never met the person in real life. Thai government estimated Thai citizens lost 60 to 70 million Thai baht daily to fraud in 2024, with total losses of 42 billion Thai baht between October 2023 and November 2024.
Vietnamese police dismantled a cross-border money laundering network that transferred 785 million dollars in criminal proceeds through 30 companies and 150 bank accounts. The UN Human Rights Office reported that hundreds of thousands of people in Southeast Asia were forcibly detained by criminal gangs and compelled to participate in romance scams, cryptocurrency fraud, and illegal gambling.
Index analysis
The AI deepfake scams exploited the lack of in-person verification in online relationships and the increasing sophistication of AI-generated synthetic media. Criminals used AI to create convincing fake photos, videos, and documents that deceived victims over extended periods.
The use of AI generation technology in fraud has expanded rapidly across Southeast Asia, with Thai authorities noting that perpetrators use AI through phone calls, text messages, and malicious links to build increasingly complex fraud ecosystems. Major telecom fraud centers operate from Myanmar, Cambodia, and Laos, primarily run by Chinese criminal gangs.
Governance controls
Thailand's government has required banks, mobile operators, social media platforms, and online lenders to take responsibility for financial fraud on their platforms and cut power, internet, and fuel supplies to suspected telecom fraud areas in Myanmar. Thailand and Cambodia planned to establish a joint action center to combat fraud gangs operating in border regions, with police destroying one gang and rescuing 215 people in a cross-border operation.
A Chinese National People's Congress representative proposed adding 'telecom network fraud crime' as an independent offense in criminal law with enhanced sentencing standards to better reflect the social harm and technical characteristics of such crimes. China has increased cooperation with Thailand, Myanmar, and Cambodia to prevent cross-border crime and combat online gambling and telecom fraud.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.