Editor’s Note: Mario Masaya is currently serving the US-ASEAN Business Council as Vice President of Research, Technology, and Financial Services based in the Washington D.C. office. He oversees the Council’s ICT, Financial Services, and ASEAN Committees. The US-ASEAN Business Council served as co-host for the eleventh Mekong-US Partnership Track 1.5 Policy Dialogue on Digital Economy, and Mario was instrumental in supporting private sector participation in the discussions. These are his insights, drawing on this involvement and other recent outputs related to scams.
By Brian Eyler, Senior Fellow and Director, Southeast Asia Program
Southeast Asia faces a fast-growing scam epidemic. Globally, scams cost consumers over $1 trillion per year, and a Global Anti-Scam Alliance 2025 survey shows that 79% of Southeast Asian adults were exposed to scams in the past year. These cross-border scams, from fake job offers to romance and investment scams to e-marketplace fraud, erode digital trust, strengthen organized crime, and threaten the region’s booming digital economy, poised to reach $ 1 trillion in just five years.
Technology has been the engine of Southeast Asia’s digital boom, enabling fintech, e-commerce, and social platforms to thrive. Yet the same tools that underpin this growth — such as Artificial Intelligence (AI), instant payments, and encrypted messaging — are now weaponized by scammers, transforming fraud into a fast-scaling, cross-border industry. Scammers have become super sophisticated, exploiting these technological advancements and people’s emotional vulnerabilities to achieve their goals. This is a dangerous combination, and no single country or company can stop them alone.
This is not just a law enforcement issue. It’s an economic survival issue. The issue’s pervasive influence is clear. At a Policy Dialogue on Digital Economy hosted by the Stimson Center and US-ASEAN Business Council (USABC) in August 2025 that drew together over 70 experts to discuss gaps and challenges for digital economy growth, scams came up over 150 times. The only way forward is shared responsibility: Governments, companies, and civil society organizations must work together to fight online scams. Each actor has its role, and the time to act is now. ASEAN member states, with support from regional and global partners like the U.S., have made progress in fighting scams. But if momentum is lost, the region risks being overwhelmed by more sophisticated methods and transnational criminal networks. The following actions and recommendations are drawn from the policy discussions at the Track 1.5 Policy Dialogue, as well as from recent white papers and analysis put out by the Southeast Asia Public Policy Institute, Global Anti-Scam Alliance, and the ASEAN Cybersecurity Assessment Maturity Model (ACAM) project.
Governments: Stronger Institutions and Collaboration with Partners and Allies
- Regional Action: Strengthening ASEAN as an institution is critical. Many studies and dialogues have emphasized the need for greater cross-border collaboration on data-sharing and law enforcement. The ASEAN Anti-Online Scam Working Group, created in 2024 under the Digital Ministers’ framework, should be empowered with dedicated funding and a broader mandate. Going further, ASEAN should establish a ministerial-level meeting dedicated to scams and embed commitments into other platforms, such as finance, telecom, and digital economy meetings. Scam risks should also be acknowledged in the upcoming ASEAN Digital Framework Agreement (DEFA).
- Regional governments should view the U.S., both the government, and more importantly, the American private sector, as an ally in this fight. The U.S. government must continue supporting anti-scam initiatives, demonstrating its brand of partnership: innovation plus responsibility. This is not just a regional problem as U.S. consumers are also losing billions each year to international scam networks, many of them linked to the same groups operating in Southeast Asia. The U.S. Treasury estimated that Americans lost at least $10 billion in 2024 to Southeast Asia–based scam operations. For Washington, supporting Southeast Asia should therefore not be seen as foreign aid but as self-protection: The same syndicates draining local victims are also targeting Americans, undermining U.S. companies, and destabilizing trusted digital trade routes.
Private Sector: Innovation, Tools, and Training
- Why it matters: Combatting scams is not a charity cause for the private sector. It is about safeguarding revenue, shaping regulation, and protecting reputation. A few years ago, I argued that digital identity is the backbone of Southeast Asia’s digital economy growth. Trust is the engine of digital economy. Scams erode consumer trust in e-commerce, fintech, social media and digital payments. Combatting scams not only preserves this growth trajectory but also strengthens U.S. brand integrity. When scams exploit U.S. platforms, users blame the platforms, not just the criminals.
- Current contributions: U.S. firms already provide essential tools that underpin Southeast Asia’s digital economy in ways ranging from AI-based risk scoring, identity verification, and fraud filters to real-time analytics, customer authentication, user education, and secure payments infrastructure. Many have launched campaigns with governments to advance digital ID and fraud prevention.
- What more can be done: Companies should expand awareness-raising and user education. Developing creative and gamified tools such as Duolingo for scam detection could be an interesting approach. Furthermore, companies should work with ASEAN governments as partners to design anti-scam centers and contribute technical expertise. Companies should push for responsible use of AI and digital ID solutions, training small and medium size enterprises (SME) and investing in broader cyber-resilience.
- Given the impact of scams on all companies, even those outside the digital sector, private firms should incorporate anti-scam efforts into their corporate social responsibility (CSR) programs. Scaling campaigns through public service announcements or workplace trainings can help drive public awareness and promote behavioral change across all levels of society.
Civil Society and Industry Associations: Raising Awareness and Creating Dialogues
- Convening role: Dialogue is essential to align action. For example, the recently convened Track 1.5 Policy Dialogue brought together U.S. and ASEAN government officials, civil society organizations, and private companies to discuss common strategies. There is an urgent need to continue this type of dialogue as the momentum is right here, right now.
- Advocacy role: Industry associations like USABC can integrate scam issues into workshops, SME trainings, and policy dialogues. USABC should continue supporting regulatory development by offering practical feedback on policies to combat scams.
- USABC’s strength lies in convening the U.S. private sector. Leveraging its network, USABC should continue advocating for and working with the U.S. and ASEAN governments to create further platforms for dialogue. Given the scale of the online scam threat, strengthening private sector involvement in regional cooperation under the ASEAN-US Cyber Dialogue would be a timely and necessary step.
- Scaling awareness: While CSOs and industry associations have launched awareness campaigns and provided victim support services, these efforts remain fragmented. They should expand these efforts through the regional platform by utilizing the ASEAN Secretariat’s strength in convening entities associated with ASEAN to raise awareness.
Scams are a systemic threat. Protecting Southeast Asia’s digital economy requires governments, the private sector, and civil society to act together. ASEAN governments must see U.S. companies as allies, and U.S. companies must treat scams as a core business imperative, not a side issue. Institutions such as USABC, the Stimson Center, and other non-governmental actors can serve as the bridge that turns shared responsibility into action.
The Scam Epidemic Won’t Wait. Neither Should We.
By Mario Masaya
Southeast Asia
Southeast Asia and the United States together are facing a rapidly expanding online scam epidemic. Affected citizens encounter everything from inconveniences in the form of spam texts and calls to major impacts, such as the loss of retirement funds or life savings. While digital technology drives an ongoing economic boom that could bring Southeast Asia up to $1 trillion of digital economic benefits by 2030, many of these same technologies are used by bad actors. This piece explores specific recommendations and the differentiated but complementary roles that governments, the private sector, and civil society can take to counter the scourge of online scams.
Editor’s Note: Mario Masaya is currently serving the US-ASEAN Business Council as Vice President of Research, Technology, and Financial Services based in the Washington D.C. office. He oversees the Council’s ICT, Financial Services, and ASEAN Committees. The US-ASEAN Business Council served as co-host for the eleventh Mekong-US Partnership Track 1.5 Policy Dialogue on Digital Economy, and Mario was instrumental in supporting private sector participation in the discussions. These are his insights, drawing on this involvement and other recent outputs related to scams.
By Brian Eyler, Senior Fellow and Director, Southeast Asia Program
Southeast Asia faces a fast-growing scam epidemic. Globally, scams cost consumers over $1 trillion per year, and a Global Anti-Scam Alliance 2025 survey shows that 79% of Southeast Asian adults were exposed to scams in the past year. These cross-border scams, from fake job offers to romance and investment scams to e-marketplace fraud, erode digital trust, strengthen organized crime, and threaten the region’s booming digital economy, poised to reach $ 1 trillion in just five years.
Technology has been the engine of Southeast Asia’s digital boom, enabling fintech, e-commerce, and social platforms to thrive. Yet the same tools that underpin this growth — such as Artificial Intelligence (AI), instant payments, and encrypted messaging — are now weaponized by scammers, transforming fraud into a fast-scaling, cross-border industry. Scammers have become super sophisticated, exploiting these technological advancements and people’s emotional vulnerabilities to achieve their goals. This is a dangerous combination, and no single country or company can stop them alone.
This is not just a law enforcement issue. It’s an economic survival issue. The issue’s pervasive influence is clear. At a Policy Dialogue on Digital Economy hosted by the Stimson Center and US-ASEAN Business Council (USABC) in August 2025 that drew together over 70 experts to discuss gaps and challenges for digital economy growth, scams came up over 150 times. The only way forward is shared responsibility: Governments, companies, and civil society organizations must work together to fight online scams. Each actor has its role, and the time to act is now. ASEAN member states, with support from regional and global partners like the U.S., have made progress in fighting scams. But if momentum is lost, the region risks being overwhelmed by more sophisticated methods and transnational criminal networks. The following actions and recommendations are drawn from the policy discussions at the Track 1.5 Policy Dialogue, as well as from recent white papers and analysis put out by the Southeast Asia Public Policy Institute, Global Anti-Scam Alliance, and the ASEAN Cybersecurity Assessment Maturity Model (ACAM) project.
Governments: Stronger Institutions and Collaboration with Partners and Allies
Private Sector: Innovation, Tools, and Training
Civil Society and Industry Associations: Raising Awareness and Creating Dialogues
Scams are a systemic threat. Protecting Southeast Asia’s digital economy requires governments, the private sector, and civil society to act together. ASEAN governments must see U.S. companies as allies, and U.S. companies must treat scams as a core business imperative, not a side issue. Institutions such as USABC, the Stimson Center, and other non-governmental actors can serve as the bridge that turns shared responsibility into action.
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