The ASEAN+3 Conference on Consumer Protection in the Digital Economy and AI.” has highlighted growing concerns among consumer organizations in ASEAN regarding the rapid escalation of cyber threats.
These cyber threats have caused significant damage, while consumer education and existing laws have struggled to keep up with cybercriminals, posing serious threats to both the economy and people’s lives. Data shows Vietnam suffered heavily in 2023, with losses amounting to 3.6% of its GDP.
Consumers in Hong Kong lost at least USD 25 million, and in Thailand, citizens lost approximately THB 78 million daily from their wallets or bank accounts. In response, ASEAN consumer organizations have come together to sign an MOU, strengthening cooperation to tackle online threats and protect consumer rights across the region.
Ms. Saree Aongsomwang, Secretary-General,Thailand Consumers Council(TCC), stated that the “Strengthening The ASEAN+3 on Consumer Protection in the Digital Economy and AI” conference, held for the first time in ASEAN, was a major success. Organized under the collaboration of the Thailand Consumers Council, the Foundation for Consumers, the Indonesia Consumers Foundation (YLKI), the Federation of Malaysian Consumers Associations (FOMCA), and other ASEAN+3 consumer organizations, the event took place from August 29-30, 2024.
In addition to exchanging knowledge on preventing and managing cyber consumer rights violations, the conference included the signing of an MOU between consumer organisations from seven countries Malaysia, Philippines, Myanmar, Laos, Indonesia, South Korea and Thailand.
This MOU serves as a framework for cooperation among ASEAN consumer organizations to enhance the exchange of information and knowledge, ensuring equal benefits for all member countries and strengthening the capacity of relevant officials. Thai consumers, in particular, stand to benefit significantly.
According to the Royal Thai Police, in the three years from March 1, 2022, to July 31, 2024, there were 612,603 complaints related to online threats, with total damages amounting to THB 69,186 million, averaging more than THB 78 million daily.
Dr. Ammarin Pimnoo, Advisor of the Special Committee for Regulations and Promoting the Use of Artificial Intelligence Technology to Support Future Changes, the House of Representatives,Thailand. mentioned that the committee is urgently considering guidelines for regulating AI technology use.
This includes potential legislation on artificial intelligence in Thailand, a matter of interest shared by many other countries, to prepare for addressing issues arising from AI and emerging technologies.
Ms. Alice Pham, Director, AP Research,Vietnam, highlighted that online fraud and scams using AI led to losses exceeding USD 16.23 billion in 2023, equating to 3.6% of Vietnam’s GDP. The Ministry of Public Security handled 1,500 related cases, with financial losses between USD 318-398 million.
The Ministry of Information and Communications reported 17,400 complaints from internet users, with damages surpassing USD 12 million. The country faces 24 types of fraud, including identity theft, account hacking due to anonymous SIM cards, unauthorized bank accounts, personal data breaches, and the rise of new technologies like AI DeepFake.
The Vietnamese government is addressing these issues through a combination of measures, including enforcing consumer protection laws, drafting digital technology industry legislation, educating and raising consumer awareness, prosecuting fraud, and seeking international cooperation.
Mr. Ang Zhong Xin Wilfred, Deputy Head of Consumer Relations at the Consumers Association of Singapore (CASE), expressed concern over the rapid and sophisticated use of AI in consumer fraud. Particularly troubling is the rise in cases involving voice cloning for scams and chatbot-driven fraud, creating significant challenges for banks and law enforcement. In the first half of 2024, there were 2,611 e-commerce complaints, exceeding half the total number from 2023, which saw 3,711 complaints.
Top issues with online transactional complaints (1H2024) fell into 5 categories. Failure to honour is the top five at 922 cases, followed by the Delay in providing refund at 363 cases, unsatisfactory services at 332 cases, Redress/remorse at 278 cases, and Defective or non-conforming goods at 242 cases.
Singapore’s response includes collaboration with major e-commerce platforms like Lazada and Shopee to resolve disputes and seeks stronger international cooperation to address the majority of cyber threats originating from outside the country.
Ms. Gilly Wong Fung-han, Chief Executive, Hong Kong Consumer Council, noted that Hong Kong, as a global financial hub and digital innovation leader, is implementing over 100 digital transformation projects. In July 2024, the establishment of the Digital Policy Office aimed to develop policies and measures to protect consumers from AI-related technology threats. In 2023, online shopping fraud was the top consumer issue, accounting for 32.28% of complaints.
In May 2024, 21 deepfake video clips impersonating government officials or celebrities were discovered, with Hong Kong citizens defrauded of USD 25 million, believing they were video-calling a senior financial executive from a UK multinational.
Hong Kong’s preventive measures include the use of tools like “Scameter” for comprehensive online fraud detection, promoting consumer awareness, monitoring both online and offline markets, and enhancing transparency through platforms like Online Price Watch and Oil Price Watch. Additionally, international cooperation remains a critical component in combating these threats.
