Washington: The United States has launched a sweeping crackdown on cyber scam syndicates operating in Southeast Asia, announcing sanctions on a vast network of companies and individuals in Myanmar and Cambodia. The move targets groups accused of defrauding Americans of billions of dollars while also engaging in widespread human trafficking and forced labour.
According to the U.S. Treasury Department, the sanctions cover nine entities linked to operations in Myanmar’s Karen State and ten more operating out of Cambodia. These organizations, officials said, have been running elaborate online fraud schemes that not only drained financial resources from victims worldwide but also thrived on the exploitation of thousands of trafficked individuals. Victims, often lured with fake job offers, were confined in compounds and forced to carry out scams under threats of violence, forced prostitution, and other abuses.
Treasury officials stressed that the scale of the fraud is unprecedented. In 2024 alone, Americans reportedly lost over $10 billion to such scams a 66 percent jump compared to the previous year. John K. Hurley, the Under Secretary for Terrorism and Financial Intelligence, underscored the dual threat these operations pose. “These networks represent both a massive financial crime problem and a grave human rights crisis,” he said, pledging to use the “full weight of U.S. tools” to dismantle them.
One of the main epicenters under scrutiny is Shwe Kokko, a rapidly expanding settlement in Myanmar’s Karen State near the Thai border. Known as a stronghold for criminal enterprises, Shwe Kokko is controlled by networks linked to the Karen National Army (KNA) and Chinese investors. Investigations reveal that the area has become a fortress of online scams, backed by armed protection, where trafficked workers are forced into relentless online fraud operations. U.S. sanctions now specifically target KNA leaders and companies such as Yatai International Holdings, which were identified as central players in running and financing these compounds.
In Cambodia, scam compounds based in cities like Sihanoukville and Bavet have operated under the cover of casinos, hotels, and commercial properties. These sites were found to be key hubs for fraudulent cryptocurrency schemes, investment scams, and money laundering. Among those sanctioned are prominent business figures and their companies, including Dong Lecheng, Chen Ai Len, and Su Liangsheng, whose firms such as TC Capital, KBX Investment, and HH Bank have been linked to these networks.
The economic scale of these criminal enterprises is staggering. Rights groups estimate that Cambodia’s scam centers generate between $12.5 billion and $19 billion annually, a sum that may account for as much as 60 percent of the country’s GDP. Reports describe these centers as resembling high-security prisons, where hundreds of thousands of people many of them foreign nationals are trapped in conditions likened to modern-day slavery.
This is not the first time the U.S. has acted against such groups. Earlier this year, Washington designated the Karen National Army as a transnational criminal organization, citing its involvement in scams, trafficking, and smuggling. The latest sanctions go further by targeting the business networks and shell companies that have enabled these crimes to thrive. By freezing assets and banning U.S. citizens and companies from engaging with these entities, the Treasury aims to choke off the financial flows sustaining the syndicates.
Human rights advocates have welcomed the move but caution that the humanitarian crisis remains severe. Survivors who have escaped from these scam centers recount stories of torture, forced labor, and systematic abuse. While thousands have been rescued in recent months, many more remain trapped. Observers argue that only coordinated international enforcement and stronger protections for trafficking victims will address the problem at its roots.
The U.S. action highlights the increasingly global nature of cyber fraud, which relies on complex networks of technology, finance, and human exploitation. As sanctions take effect, Washington has signaled that it will continue monitoring enablers of these operations, from real estate fronts to online platforms. Authorities stress that dismantling these syndicates will require collaboration not just between governments, but also with financial institutions and tech companies worldwide.