#20: Largest Illicit Online Marketplace, Scam Compound Update, Cyber Fraud in 2024

This week, we’re diving into the explosive growth of the world’s largest scam marketplace, Thailand’s latest move to disrupt billion-dollar fraud operations, and a staggering 90% of U.S. companies hit by cyber fraud last year. Let’s break it down.

NATE'S TAKE - FEBRUARY 11, 2025

Top Three This Week

1. The ‘Largest Illicit Online Marketplace’ Is Scaling Fraud Faster Than Ever
2. Thailand Cuts Power to Scam Compounds, But Will It Stop the Fraud?
3. 90% of U.S. Companies Faced Cyber Fraud in 2024—A Wake-Up Call for Businesses

1. The ‘Largest Illicit Online Marketplace’ Is Scaling Fraud Faster Than Ever

Photo Illustration: Wired Staff; Getty Images

A new report reveals that Huione Guarantee, a Cambodian-linked online marketplace, has processed $24 billion in transactions, making it the largest illicit marketplace ever. Unlike traditional dark web sites, Huione Guarantee serves scammers directly, offering money laundering services, deepfake tools, victim contact lists, and fake investment websites—all through Telegram-based groups and bots.

The platform is expanding aggressively, adding its own messaging app, cryptocurrency exchange, and stablecoin (“USDH”) to reduce reliance on outside infrastructure. Many of its sellers openly advertise laundering services, with billions in crypto transactions allegedly linked to fake gambling schemes designed to clean scam proceeds.

While authorities are monitoring Huione Guarantee, it still depends on Telegram and Tether, meaning there’s an opportunity to disrupt its operations. But as we’ve seen before (FIF9), illicit networks adapt fast. If platforms like Huione fully transition to their own financial ecosystem, shutting them down will become much harder.

For fraud fighters, this is another reminder that fraud isn’t just individual scams—it’s a billion-dollar industry with infrastructure built to last. The longer these networks operate unchecked, the more fraudsters they enable.

2. Thailand Cuts Power to Scam Compounds, But Will It Stop the Fraud?

In an effort to disrupt billion-dollar scam operations, Thai authorities have cut power to several sites in Myanmar known for housing human trafficking victims forced to run online scams. These compounds, linked to Chinese crime syndicates, are part of a growing fraud network targeting victims worldwide.

One location, Myawaddy, is estimated to hold 6,500 trafficked workers, operating crypto fraud, romance scams, and fake investment schemes. The crackdown follows international pressure, including the high-profile abduction of Chinese actor Wang Xing, who was forced to work in one of these scam centers before being rescued.

But experts doubt the power cuts will stop the fraud. Many of these compounds have diesel generators and Starlink internet, allowing them to keep running. Myanmar’s ongoing conflict has only fueled fraud, corruption, and human trafficking, making enforcement even harder.

For fraud fighters, this mirrors past crackdowns (FIF17)—disrupting infrastructure helps, but without ongoing law enforcement action, these scam networks will adapt and relocate.

3. 90% of U.S. Companies Faced Cyber Fraud in 2024—A Wake-Up Call for Businesses

If it felt like cyber fraud was everywhere last year, that’s because it was. A new report shows that 90% of U.S. companies experienced some form of cyber fraud in 2024, with financial losses and reputational damage skyrocketing.

The rise is largely driven by fraudsters’ rapid adoption of AI, with deepfakes and voice cloning (deepaudio) increasing by 118%. Yet, despite these numbers, the vast majority of executives say they’re confident in their ability to spot fraud, even though their companies are still falling victim.

The report highlights some of the biggest fraud risks businesses are facing:

• Business email compromise (BEC) scams and imposter email scams rose 103% YoY, making them the top fraud tactic used against organizations.
• Payment fraud is more expensive than ever with 60% of companies reporting fraud-related losses over $5M in 2024, a 136% increase from the previous year.
• Vendor fraud is surging—69% of companies were targeted, up from 47% in 2023, with vendor and wire transfer fraud now the top two threats.

For fraud teams, this report also confirms what we’ve seen before (FIF18): awareness training alone isn’t stopping fraud. Businesses need to build fraud prevention into daily operations. The fraud landscape is evolving fast, and companies that don’t adapt will continue to pay the price.

(You can download the full report from Trustpair here.)

‍

===

That’s all for this week! For more insights, follow us on LinkedIn or X, and if you want to learn more about what we do, visit www.specprotected.com.