
The fraud industry in Southeast Asia has developed into a sophisticated operation that uses modern technology to defraud victims on a large scale. A significant part of this success is the use of grey market technology – tools and equipment sourced through unofficial or illegal channels that present legal and regulatory loopholes. Third-party advertising services provided by contractors, particularly from China and Malaysia. These enablers provide fraudsters with the tools, platforms and strategies to defraud victims in unprecedented ways, creating a shadow economy that is difficult to dismantle and lucrative. These technologies provide fraudsters with the means to operate effectively, making them more difficult to track and investigate. Criminal networks have adopted advanced technologies such as malware, artificial intelligence (AI) and deep fakes to increase the sophistication and reach of their fraud.
A well-known example is the “pig killing” scam, where victims are deceived into investing in fake cryptocurrency schemes. Platforms such as Cambodia-based Huiwang Guarantee have been identified as being at the heart of this ecosystem, facilitating services for scammers, including target acquisition, money laundering, and human trafficking channels . The financial impact of these scams is staggering. Online fraudsters in Southeast Asia are expected to steal up to $ 37 billion in 2023 , with AI-driven crime playing a major role in this surge. The integration of advanced technologies is making these scams more convincing and harder to detect, posing a huge challenge for law enforcement agencies.
Efforts to combat these illegal activities are ongoing. For example, Laos has begun to crack down on online fraud within its borders, specifically targeting the Golden Triangle Special Economic Zone, which is notorious for being home to many fraud centers. Authorities have ordered the closure of these so-called parks in response to international pressure and adverse impacts on regional security.
What is the gray industry (technology)?
Grey market technology refers to hardware, software, and digital tools obtained outside of authorized distribution channels. Unlike black market goods, these items are often manufactured legally but sold or repurposed in a way that circumvents regulations, licensing, or official oversight. In the fraud industry, grey market technology includes counterfeit devices, unauthorized software, and untraceable communications tools. While this technology is not inherently illegal, it is often exploited by criminal enterprises due to its low price and lack of regulation. In Southeast Asia, grey market technology is the cornerstone of everything from phishing schemes to crypto scams .
How do fraud groups use the gray industry chain to commit fraud?
Untraceable communication tools
Scam and Phishing Tools
Digital Payment and Money Laundering Solutions
Why grey industry technology is booming in Southeast Asia



The above screenshots were found on Instagram , where advertising companies openly use the platform to promote scams related to services such as human resources, gambling, investments, loans, e-commerce scams, etc.



Another screenshot advertises a service that directs customers to a scam center, directing them to a fake investment group chat platform. The screenshot on the far right features the term " grey industry contractor . "
While legitimate advertising agencies and contractors work within ethical and legal boundaries, there exists a murky area known as the "grey market" that operates in a legally murky space. One of the most concerning trends in this grey market is the emergence of advertising contractors who promote scammy or deceptive services, often leading clients into scams or unethical business practices .
Strategies used by grey industry advertising contractors
Gray market advertising contractors rely on a variety of strategies to promote their services and reach their target 'audience':
Gray market advertising contractors are a significant problem in the digital landscape, especially as online scams continue to proliferate. While these contractors appear to be operating within the legal realm, their activities often cause real harm to consumers and businesses. As the world of digital advertising continues to evolve, platform providers, regulators, and consumers must remain vigilant and proactive in identifying and combating gray market advertising contractors. Only by working together can we create a safer, more trustworthy online environment for everyone.