$10 Billion Stolen: US Cracks Down on Myanmar, Cambodia, and China Fraud Rings

On Monday, the US imposed sanctions against a large network of scam centers across Southeast Asia. According to the U.S. Department of the Treasury, those scammers have allegedly stolen billions of dollars from Americans using forced labor and violence. 

US Treasury Sanctions Against Online Scammers

The sanctions imposed by the US target 9 Myanmar, 10 Cambodian, and Chinese entities controlling and supporting scam centers that have led to more than $10 billion in losses from Americans in 2024. The nine Burmese entities sanctioned are alleged to be operating under the protection of the already-sanctioned Karen National Army (KNA). 

 U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, Anthony Hurley, stated, “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.” 

“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,” he added. 

Threats of Violence and Forced Prostitution

The Trump administration is making moves to crack down on the online fraud that lured American job seekers into scams and coerced them into engaging in online fraud under threat of violence. 

The Treasury Department said that the fraud rings are using threats of debt bondage, violence, and forced prostitution to coerce individuals into committing online scams against strangers. The frauds are usually conducted by sending a text message to the victim’s phone to lure them in. 

According to the 2023 Treasury’s Financial Crimes Enforcement Network (FinCEN) report, scams often use romantic traps to gain the victim’s trust. Then, they convince their targets to make purported “investments” in virtual currency on websites that are designed to look like legitimate investment platforms, but are actually controlled by the scammers themselves.

Victims of Online Scams

While it is hard to point out the exact figure, the now-defunct US aid agency has estimated that approximately 150,000 victims are trapped in scam compounds in Cambodia. Moreover, the Thai government has estimated 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.”