Speaking at the Asia International Security Summit and Expo 2025, Malaysia’s Deputy Prime Minister, Datuk Seri Ahmad Zahid Hamidi, underscored the need for stringent security measures in order to foster economic prosperity in Southeast Asia. Given the region’s rapidly expanding digital economy, Zahid emphasized the critical role of cybersecurity, cautioning that criminals are increasingly exploiting emerging technologies, such as artificial intelligence (AI), to carry out sophisticated attacks.
“While discussions are valuable, execution is imperative,” Zahid stressed, urging all stakeholders – governments, law enforcement agencies, and industry leaders – to take decisive action in key areas. His comments were reported by local media outlet, Malay Mail.
Zahid’s proposed solution is the implementation of a national blockchain-powered identity verification system to secure digital transactions for Southeast Asia’s 670 million inhabitants. This technology could potentially curb identity fraud, which has become a billion-dollar crime across the globe. In 2023 alone, identity fraud victims in the United States lost a staggering $43 billion.
The situation in Southeast Asia is particularly alarming, with identity fraud cases spiking by 120% in 2024, according to a report by verification platform Sumsub. The most significant increases were recorded in Singapore, Thailand, and Indonesia, where reported cases tripled last year. The most common crimes involved the use of fake IDs and passports, account takeovers, and the deployment of deepfakes.
In addition to blockchain technology, Zahid suggested the use of AI-driven predictive policing and real-time urban surveillance to proactively detect and deter security threats. He also advocated for the establishment of a Cybercrime Task Force within ASEAN to counter the surge in digital crime across the region.
One such crime that has seen a significant increase in Southeast Asia is ‘pig butchering’, where criminals build a relationship with a victim over weeks, or sometimes months, with the aim of extracting as much money as possible. Research from Chainalysis revealed that many of the individuals involved in these scams are victims themselves, having been kidnapped or trafficked and forced into conducting these fraudulent operations.
These scammers typically lure their victims into investing in fraudulent digital currency projects or convince them to send money for ‘urgent’ needs in digital assets. While some use fraudulent clone websites, others exploit legitimate platforms with insufficient safeguards, such as Binance, which was convicted and fined by American authorities last year.
The proposed use of blockchain as a transparent ledger for digital identity verification could play a crucial role in restoring trust and securing transactions within the digital space. As Southeast Asia continues to grapple with the rise in digital crime, the adoption of such technologies could not be more timely.
