US Sanctions Target Scam Networks in Southeast Asia
On Monday, the United States implemented sanctions against a significant network of scam centers located throughout Southeast Asia. According to the U.S. Department of the Treasury, these scammers are accused of stealing billions of dollars from Americans through forced labor and violence.
The sanctions specifically target nine entities from Myanmar, ten from Cambodia, and several Chinese entities that are controlling and supporting the scam centers responsible for over $10 billion in losses faced by Americans in 2024. The nine sanctioned Burmese entities are said to be operating under the protection of the already-sanctioned Karen National Army (KNA).
Anthony Hurley, U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, remarked, “Cyber fraud in Southeast Asia not only threatens the well-being and financial security of Americans, but also forces tens of thousands of people into modern slavery.”
He added, “The U.S. Treasury will use all its tools to combat organized financial crime and protect Americans from the enormous damage these scams can cause.”
The Trump administration is taking steps to address the online fraud that has tricked American job seekers into scams and coerced them into participating in online fraud under threat of violence.
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The Treasury Department indicated that these fraud rings are employing threats of debt bondage, violence, and forced prostitution to compel individuals into perpetrating online scams against unsuspecting victims. Typically, the scams begin with a text message sent to the victim’s phone to draw them in.
As per the 2023 Treasury’s Financial Crimes Enforcement Network (FinCEN) report, these scams frequently utilize romantic traps to build trust with their victims. After gaining that trust, they convince their targets to make so-called “investments” in virtual currency on websites designed to resemble legitimate investment platforms, while in reality, they are controlled by the scammers themselves.
Although it is challenging to determine an exact number, the now-defunct U.S. aid agency estimated that around 150,000 victims are currently caught in scam compounds in Cambodia. Additionally, the Thai government estimates that 100,000 people are enslaved in Myanmar.
The Treasury stated, “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.”
