US Sanctions Cyber Scam Centers in Southeast Asia Over Forced Labor, $10B Fraud Losses

The United States has announced new sanctions against a sprawling network of cyber scam operations in Southeast Asia, accusing them of using forced labor to cheat Americans out of billions of dollars every year.

The Treasury Department’s move, revealed on Monday, targets nine entities in Myanmar and ten in Cambodia. According to officials, these centers operate under the protection of armed groups and local authorities while forcing thousands of workers into carrying out online fraud schemes.

“Southeast Asia’s cyber scam industry not only threatens the financial security of Americans but also traps thousands of people in modern slavery,” said John Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence. “We will use the full power of our tools to combat this organized crime.”

The scams — often involving fake investment offers and cryptocurrency schemes — cost Americans more than $10 billion in 2024 alone, the Treasury said. Many victims are tricked into downloading apps or giving remote access to their devices, while scam workers are themselves victims of trafficking and violence.

Officials described brutal conditions inside the scam compounds. Job seekers are lured with promises of high-paying work, only to be trapped, beaten, or threatened with forced prostitution if they refuse to participate in online fraud. A notorious scheme called “pig butchering” involves building fake online relationships with victims to pressure them into investing money, which is then stolen.

The industry grew rapidly during the COVID-19 pandemic and has become a major regional problem. Governments in Southeast Asia have carried out raids, detaining thousands, but rights groups say enforcement is weak. Amnesty International accused Cambodia in June of “deliberately ignoring” human rights abuses linked to the scam centers.

Washington’s latest action adds to a series of steps by the Trump administration to crack down on cyber fraud networks worldwide. For now, the U.S. hopes the sanctions will cut off financial channels and put pressure on those running the operations — both to protect American consumers and to shine a light on the exploitation behind the scams.