Cambodia halves online scam activity through tech crime crackdown

By Philip J Heijmans

 

Cambodian authorities say a crackdown on online scam compounds has cut activity in half since the start of this year, as they face international pressure to dismantle networks accused of stealing billions annually from people worldwide.

 

“The problem of online scams has fallen to just 50 per cent,” Senior Minister Chhay Sinarith, chairman of the Secretariat of the Commission for Combating Technology Crimes, told Bloomberg News by telephone Wednesday. 

 

He described the figure as a preliminary estimate reflecting a reduction in overall scam operations but did not specify how it was calculated or how many compounds remain active, or their size.

 

Cambodia is being pressed by countries including China and the US, as well as human rights groups, to take stronger action against the centers that have proliferated since the Covid-19 pandemic. Criminal syndicates — many with links across Southeast Asia and China — are accused of running online investment and romance scams and illegal gambling operations.

 

Authorities say there have been dozens of raids on suspected scam sites and the deportation of thousands of foreign nationals. Cambodian officials also arrested and extradited alleged kingpin Chen Zhi to China over his suspected role in building a large-scale scam network. Chhay Sinarith said investigations linked to that case remain before the courts and declined to comment further. 

 

He added authorities are investigating more than 100 online scam cases, including tracking financial flows and personal assets. 

 

Chhay Sinarith said officials aim to bring all remaining operations under control by April. Nearly 500 suspects have been charged and detained in connection with illicit online activities. “We will bring the ringleaders and masterminds to justice,” he said, adding the state will soon “have control of all online scam operations, both small and large.”

 

Still, activists and analysts who study transnational crime doubt the latest crackdown will eradicate the scam centers. They warn the gangs behind them are quick to adapt — shifting tactics and locations as needed. The operations remain highly lucrative and relatively low-cost to maintain, especially with advances in artificial intelligence.

 

The scale of the problem extends far beyond Cambodia. The US Institute of Peace estimates that transnational criminal networks running illegal online gambling and scam operations worldwide stole nearly $64 billion in 2023 alone. The United Nations has warned that scam centers in Southeast Asia have become a multibillion-dollar industry fueled in part by human trafficking, with thousands of workers coerced into online fraud.

 

“What became clear is that Chinese organized crime syndicates running large-scale scam operations in the region are targeting Americans every day,” Scott Schelble, deputy assistant director of the FBI’s International Operations Division, said this week following a trip to Thailand, Cambodia and Vietnam, where he met senior law enforcement officials.

 

“These are not small or isolated crimes; they are sophisticated, well-resourced criminal enterprises that exploit borders, technology, and vulnerable people to generate enormous profits,” he said.