The United States Treasury Department announced on Tuesday new sanctions against cyber scam operators in Myanmar and Cambodia, a rapidly growing industry that Washington says stole tens of billions of dollars from Americans in 2023.
Key Points of the Sanctions
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The sanctions target nine companies and individuals in Shwe Kokko, Myanmar, and 10 entities in Cambodia, many linked to Chinese criminal networks.
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The scams involve money laundering, illegal gambling, and fraudulent investment schemes.
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The U.S. described the networks as relying on modern slavery practices, including debt bondage, confinement, violence, and threats of forced prostitution.
Victims and Operations
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Hundreds of thousands of people, lured by fake job offers, were trafficked into scam compounds in Southeast Asia, especially along the Thai–Myanmar border.
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Once inside, victims were forced to operate online scams targeting strangers globally.
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In Cambodia, scam centers linked to crypto fraud often resembled prisons, according to Amnesty International.
Political and Security Context
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Shwe Kokko, a hub for cyber scams, was created in 2017 by Hong Kong–registered Yatai International Holdings and the Karen National Army (KNA), an armed group allied with Myanmar’s military.
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Both Yatai and the KNA have previously faced sanctions.
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Following Myanmar’s 2021 military coup, scam compounds expanded from militia areas into zones under junta control.
U.S. Statement
John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, emphasized:
“Southeast Asia’s cyber scam industry not only threatens the financial security of Americans, but also subjects thousands of people to modern slavery.”
Impact and Next Steps
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The sanctions aim to cut off financial flows to these networks and raise global pressure on governments in Myanmar and Cambodia, which have been accused of turning a blind eye.
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Both governments did not respond to Reuters’ requests for comment.