Why governments need to treat fraud like cyberwarfare, not customer service | CyberScoop<\/title> <meta name=\"description\" content=\"Fraud has become industrialized and weaponized by syndicates and hostile states. This op-ed argues it\u2019s a global security threat and outlines a new US-UK-backed public-private task force to fight it.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/industrialized-fraud-global-security-threat-international-task-force-op-ed\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Why governments need to treat fraud like cyberwarfare, not customer service\"> <meta property=\"og:description\" content=\"Fraud has become industrialized and weaponized by syndicates and hostile states. This op-ed argues it\u2019s a global security threat and outlines a new US-UK-backed public-private task force to fight it.\"> <meta property=\"og:url\" content=\"https:\/\/cyberscoop.com\/industrialized-fraud-global-security-threat-international-task-force-op-ed\/\"> <meta property=\"og:site_name\" content=\"CyberScoop\"> <meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/cyberscoop\/\"> <meta property=\"article:published_time\" content=\"2026-01-06T12:00:00+00:00\"> <meta property=\"og:image\" content=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg\"> <meta property=\"og:image:width\" content=\"4897\"> <meta property=\"og:image:height\" content=\"3428\"> <meta property=\"og:image:type\" content=\"image\/jpeg\"> <meta name=\"author\" content=\"Greg Otto\"> <meta name=\"twitter:card\" content=\"summary_large_image\"> <meta name=\"twitter:creator\" content=\"@gregotto\"> 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https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg?resize=2048,1434 2048w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg?resize=600,420 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg?resize=240,168 240w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg?resize=481,337 481w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg?resize=964,675 964w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-2.jpg?resize=1204,843 1204w\" sizes=\"(max-width: 964px) 100vw, 964px\"><figcaption> (Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"75.456101672935\"><body readability=\"150.49729879485\"><\/p>\n<p>For too long, fraud \u2013 an illicit economy rivaling the GDP of G20 nations \u2013 has been seen as a cost of doing business, a nuisance to be absorbed by banks and consumers. That perception is a dangerous relic.<\/p>\n<p>Modern fraud blends geopolitics with advanced technical tactics, carried out through criminal proxies to target businesses and the public. Yet the global response has remained piecemeal, reactive, and catastrophically inadequate. Fraud is a global security threat, which is why we are launching an <a href=\"https:\/\/www.globenewswire.com\/news-release\/2025\/11\/19\/3190993\/0\/en\/ACAMS-Launches-International-Anti-Fraud-Technology-Task-Force.html\">international public-private task force<\/a> in partnership with the US and UK governments and 40 founding members to address it with the urgency it demands.<\/p>\n<p>Industrialization has morphed fraud from petty crime into a strategic tool used by pariahs and gangsters. It subsidizes transnational organized crime and rogue states, undermining the integrity of the global financial system. <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0222\">Cartels<\/a> run timeshare fraud schemes whilst <a href=\"https:\/\/www.justice.gov\/opa\/pr\/justice-department-announces-coordinated-nationwide-actions-combat-north-korean-remote\">hostile states<\/a> increasingly rely on scams and insider fraud networks to supplement their core business models and evade sanctions. <a href=\"https:\/\/news.un.org\/en\/story\/2025\/05\/1163521\">Trafficked laborers<\/a> in Southeast Asia are forced to fuel romance and investment scams. Multinational technology and financial rails are exploited to scale these crimes at breathtaking speed.<\/p>\n<p>Industrialized fraud integrates aspects of asymmetric and economic warfare, inflicting large-scale financial and societal harm while evading conventional defenses. Fraudsters leverage global, industrial-grade tools \u2013 bot farms, malware, cryptocurrencies \u2013 alongside old-fashioned social engineering, while nations and consumers must guard every vulnerability. Rather than disrupting trade, they drain wealth directly from households. Instead of bombing infrastructure, they erode trust in banks and digital commerce.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>North Korea <a href=\"https:\/\/cyberscoop.com\/tag\/north-korean-it-workers\/\" target=\"_blank\" rel=\"noreferrer noopener\">weaponizes<\/a> cyber-enabled fraud networks to circumvent sanctions and generate revenue, causing significant economic harm while reducing the change of being identified. Global syndicates operate romance and investment scams from enclaves in <a href=\"https:\/\/www.business-humanrights.org\/en\/latest-news\/myanmar-chinese-firms-allegedly-associated-with-criminal-networks-partner-with-local-armed-groups-in-developing-special-economic-zones-analysts-say-2\/\">Myanmar<\/a> and <a href=\"https:\/\/www.amnesty.org\/en\/latest\/news\/2025\/06\/cambodia-government-allows-slavery-torture-flourish-inside-scamming-compounds\/\">Cambodia<\/a>, partnering with militias and corrupt elites in order to funnel proceeds from victims who are invested emotionally and financially. By combining criminal enterprise with geopolitical objectives, this strategy blurs the line between state-sponsored and non-state aggression.<\/p>\n<p>The numbers demand a wakeup call. Nasdaq\u2019s <a href=\"https:\/\/verafin.com\/nasdaq-verafin-global-financial-crime-report\/\"><em>Global Financial Crime Report<\/em><\/a> found $3.1 trillion in illicit funds moved through the global system in 2023, with fraud estimates ranging from $500 billion to over <a href=\"https:\/\/www.gasa.org\/post\/global-state-of-scams-report-2024-1-trillion-stolen-in-12-months-gasa-feedzai\">$1 trillion<\/a>. The costs extend well beyond stolen funds. The same infrastructure that runs romance scams is used for <a href=\"https:\/\/www.ijm.org\/news\/ijm-uncovers-links-between-child-sextortion-southeast-asias-scam-compounds\">sextortion<\/a>, <a href=\"https:\/\/www.csis.org\/analysis\/cyber-scamming-new-destination-human-trafficking-victims\">drug distribution, human trafficking, and weapons proliferation<\/a>. \u201cGuarantee markets\u201d like <a href=\"https:\/\/www.federalregister.gov\/documents\/2025\/05\/05\/2025-07837\/special-measure-regarding-huione-group-as-a-foreign-financial-institution-of-primary-money\">Huione<\/a> process billions in illicit transactions. Generative AI supercharges fraud: deepfakes, synthetic identities, and automated phishing dramatically cut costs and make attacks far easier to scale.<\/p>\n<p>Technology has expanded the attack surface, giving adversaries unprecedented asymmetric advantages. Fraudsters exploit platforms, messaging apps, and social media to target Americans and Europeans, while financial institutions spend billions on new technology to guard their assets and protect account holders.<\/p>\n<p>Some fintechs provide payment rails that <a href=\"https:\/\/verafin.com\/nasdaq-verafin-global-financial-crime-report\/\">streamline cross-border transfers<\/a> and bypass regulatory controls. Platforms like <a href=\"https:\/\/www.unodc.org\/roseap\/uploads\/documents\/Publications\/2024\/TOC_Convergence_Report_2024.pdf\">Telegram<\/a> host bazaars for malware, deepfake services, scam websites, and bulk-purchased SIM cards. Hosting and proxy services provide <a href=\"https:\/\/cyberscoop.com\/funnull-cryptocurrency-scam-sanctions\/\" target=\"_blank\" rel=\"noreferrer noopener\">conduits and obfuscation<\/a> for digital exploits. A multi-tiered infrastructure of deceit spans scam centers, malware, bulletproof hosting, global payment systems, money mules, and shell entities provides scale, sophistication, and layering making industrialized fraud possible. <\/p>\n<p>Fraud networks exploit the gap between a borderless digital world and laws in place within national borders. Malicious actors attack with global reach while hiding behind sovereignty of permissive regimes. They exploit seams between cybersecurity, telecommunications, technology platforms, and the financial sector. Even within banks, silos between cybersecurity, fraud, and anti\u2013money laundering departments create <a href=\"https:\/\/www.finra.org\/media-center\/finra-unscripted\/aml-cybersecurity\">blind spots<\/a>.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Criminals see this fragmentation as opportunity. Jurisdictional arbitrage, siloed defenses, and slow cross-border processes allow them to operate with impunity. When victims can\u2019t get meaningful recourse, confidence in the financial system erodes. When businesses absorb mounting losses, investment falters. When governments appear powerless, democratic legitimacy suffers.<\/p>\n<p>Understanding fraud as asymmetric warfare reframes it not as isolated financial crime, but as a coordinated assault on trust and economic stability. This should drive strategy beyond piecemeal fixes toward integrated, intelligence-driven countermeasures. If fraud operates as a network, defenses must be equally networked. The cybersecurity model provides a blueprint: real-time intelligence sharing, coordinated incident response, and public-private partnerships. Fraud demands the same investment and urgency, which we are driving under the new ACAMS International Anti-Fraud and Technology Task Force.<\/p>\n<p>Financial institutions and technology platforms must harden payment and identity systems with scalable verification, analytics, and resilience. Governments must build real-time international data-sharing and interdiction capabilities across borders and sectors \u2013 banks, social media, telecoms, and payment firms coordinating their response.<\/p>\n<p>Global law enforcement, regulators, diplomats, and multilateral bodies like the UN and Financial Action Task Force should elevate fraud to a strategic priority. To address industrialized fraud\u2019s global nature, we need clear frameworks and measurable commitments for every jurisdiction along the scam supply chain.<\/p>\n<p>The International Anti-Fraud and Technology Task Force represents a critical next phase to accelerate this work, coordinating across international regulators and law enforcement, financial institutions, and technology platforms to make tangible progress across policy, information sharing, capacity building, technology advancements, and public awareness. Without systemic defenses moving faster than fraudsters, we will remain one step behind \u2013 exposed, vulnerable, and on the losing side of this shadow war. That changes now.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p><em>Carole House serves as a Distinguished Senior Fellow at the Association for Certified Anti-Money Laundering Specialists (ACAMS) and a Senior Fellow at the Atlantic Council GeoEconomics Center. Carole recently departed the White House National Security Council (NSC) as Special Advisor for Cybersecurity and Critical Infrastructure. She previously served as the NSC Director for Cybersecurity and Secure Digital Innovation.<\/em><\/p>\n<p><em>Joby Carpenter is global SME, cryptoassets and illicit finance at ACAMS. He is a global subject matter expert on cryptoassets, illicit finance and emerging threats. Joby has 18 years of experience and expertise in strategic policy making, critical thinking, threat and risk analysis across the U.K. Government, intelligence and regulatory community.<\/em><\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"4.5\">\n<div class=\"author-card\" readability=\"14\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service-1.jpg?w=640&ssl=1\" alt=\"Greg Otto\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Greg Otto<\/h4>\n<p> Greg Otto is Editor-in-Chief of CyberScoop, overseeing all editorial content for the website. Greg has led cybersecurity coverage that has won various awards, including accolades from the Society of Professional Journalists and the American Society of Business Publication Editors. Prior to joining Scoop News Group, Greg worked for the Washington Business Journal, U.S. News & World Report and WTOP Radio. He has a degree in broadcast journalism from Temple University. <\/p>\n<\/p><\/div>\n<\/footer>\n<p> <\/html><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"single-article__ads js-single-article-sidebar\">\n<div class=\"ad ad--sidebar js-single-article-sidebar-5 ad--rightrail_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-4 ad--rightrail_2 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-3 ad--rightrail_3 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div><\/div>\n<\/article>\n<div class=\"popular-stories popular-stories--single-post\">\n<div class=\"popular-stories__container\">\n<h2 class=\"popular-stories__title\"> More Scoops <\/h2>\n<p>  <\/div>\n<p>\n<\/div>\n<p> <\/p>\n<section class=\"latest-podcasts\">\n<h2 class=\"latest-podcasts__title\"> Latest Podcasts\t<\/h2>\n<\/section>\n<div class=\"top-categories\">\n<div class=\"top-categories__container\">\n<h3 class=\"top-categories__category-title\">Government<\/h3>\n<\/p><\/div>\n<div class=\"top-categories__container\">\n<h3 class=\"top-categories__category-title\">Technology<\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<p> <\/main> <\/p>\n<div class=\"ad ad--bottom \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div id=\"interstitial\" class=\"welcome__container\"> <button id=\"close-modal-1\" class=\"welcome__clickable_area\"><\/button> <\/p>\n<div class=\"welcome__ad_wrapper\">\n<p> <button id=\"close-modal-3\" class=\"welcome__continue-button\">Continue to CyberScoop<\/button> <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>   <\/body> <a href=\"https:\/\/cyberscoop.com\/industrialized-fraud-global-security-threat-international-task-force-op-ed\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why governments need to treat fraud like cyberwarfare, not customer<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[325],"class_list":["post-8233","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-uncategorized"],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","chromenews-featured":"","chromenews-large":"","chromenews-medium":""},"author_info":{"display_name":"Cyber Scoop","author_link":"https:\/\/ddi.mohflo.net\/index.php\/author\/cyberscoop\/"},"category_info":"<a href=\"https:\/\/ddi.mohflo.net\/index.php\/category\/uncategorized\/\" rel=\"category tag\">Uncategorized<\/a>","tag_info":"Uncategorized","comment_count":"0","jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/posts\/8233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/comments?post=8233"}],"version-history":[{"count":0,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/posts\/8233\/revisions"}],"wp:attachment":[{"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/media?parent=8233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/categories?post=8233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ddi.mohflo.net\/index.php\/wp-json\/wp\/v2\/tags?post=8233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

{"id":8233,"date":"2026-01-06T06:00:00","date_gmt":"2026-01-06T12:00:00","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=87293"},"modified":"2026-01-06T06:00:00","modified_gmt":"2026-01-06T12:00:00","slug":"why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2026\/01\/06\/why-governments-need-to-treat-fraud-like-cyberwarfare-not-customer-service\/","title":{"rendered":"Why governments need to treat fraud like cyberwarfare, not customer service"},"content":{"rendered":"