Crypto Scams Surge as Global Enforcement Struggles to Keep Pace

Singapore and Malaysia have intensified efforts to dismantle transnational cryptocurrency scam networks, as global authorities grapple with surging fraud losses. Singapore police seized assets worth over S$150 million linked to a Cambodian scam syndicate, targeting Prince Group chair Chen Zhi and his associates in a sweeping enforcement operation. The probe, which included prohibitions on six properties and financial accounts, underscores the scale of cross-border fraud in Southeast Asia, according to an MLex report. Meanwhile, Malaysian authorities launched a nationwide manhunt for seven citizens connected to the same network, highlighting the region's coordinated response to cybercrime, according to The Business Times.

ZachXBT, a prominent blockchain investigator, has ranked Nigeria, India, Canada, the UK, and Russia as the most challenging jurisdictions for cryptocurrency fraud victims, according to ZachXBT's analysis. Legal stagnation, frozen assets, and bureaucratic hurdles in these countries leave investors with little recourse. In Canada, for instance, the "Crypto King" scandal—where $40 million was siphoned from investors—exemplifies systemic failures, with only $3 million recovered despite a $16 million spending spree by the perpetrator. The UK faces similar struggles, with crypto-related fraud losses reaching £97.7 million in the first half of 2025, compounded by slow investigations and low prosecution rates, ZachXBT noted.

Meta has introduced new tools to combat scams on WhatsApp and Messenger, including screen-sharing warnings and AI-powered chat detection. The features aim to curb tactics where scammers pose as bank officials or government agents to extract sensitive information, The Straits Times reported. These measures follow Singapore's directive under the Online Criminal Harms Act, which mandates enhanced facial recognition and prioritization of reports on impersonation fraud, The Straits Times noted.

The global crisis extends beyond Southeast Asia. A U.S.-based telecom CEO of Indian origin, Bankim Brahmbhatt, is accused of orchestrating a $500 million loan fraud by falsifying accounts receivable as collateral, Gulf News reported. BlackRock's private credit arm, HPS Investment Partners, is seeking to recover funds siphoned to offshore accounts in India and Mauritius. Separately, Canada's Immigration Department has proposed mass visa cancellations for Indians and Bangladeshis amid surging fraud concerns, sparking criticism from civil rights groups, Business Standard reported.

Cryptocurrency exchanges are also under scrutiny. A major Halloween hack targeting a protocol with $451 million in total value locked (TVL) added to 2025's record $2.17 billion in crypto thefts, Yahoo Finance reported. KuCoin, however, has positioned itself as a security leader by adopting verifiable transparency frameworks, including the Cryptocurrency Security Standard (CCSS), according to a Yahoo Finance analysis.

As scams evolve, international cooperation remains critical. South Korea and China recently signed agreements to combat online fraud and voice phishing during the APEC summit, Yonhap reported. Yet, with losses mounting and legal systems lagging, victims in jurisdictions like Nigeria and Canada increasingly turn to vigilante justice or abandon recovery efforts altogether, ZachXBT warned.