Has Cambodia Successfully Thwarted Half of Online Scam Cases?
Last week, Cambodian authorities announced that activity at fraud complexes has decreased by half since the beginning of the year. This claim was made as the government in Phnom Penh responded to international pressure to crack down on cybercriminal networks.
In recent years, the Southeast Asian nation has emerged as a major hub for online scam operators. Experts estimate that perpetrators earn billions of dollars with victims scattered across the globe.
According to the United Nations (UN), hundreds of thousands of people have been trafficked to fraud centres through various deceptions. Victims are held in conditions resembling slavery and forced to work for criminal syndicates.
This multi-country problem has damaged Cambodia’s international reputation. Both China and the United States have demanded action and taken their own steps to address the issue.
At the end of last year, the United States and the United Kingdom imposed sanctions on one of Cambodia’s largest conglomerates. Meanwhile, US prosecutors seized substantial cryptocurrency assets linked to its founder, Chen Zhi. Chen Zhi is a naturalised Cambodian citizen who previously served as an adviser to Prime Minister Hun Manet and his father, former Prime Minister Hun Sen.
Cambodia has consistently denied that senior government officials are involved in the fraud industry. Authorities have also sought to demonstrate that they are handling the matter. Recently, they stated that over 210,000 foreign scam suspects have voluntarily left Cambodia since June 2025. Additionally, approximately 30,000 foreign nationals have reportedly been arrested and deported.
Prime Minister Hun Manet outlined a new draft law on 5 March aimed at eliminating online fraud operations. The regulations would hold property owners, landlords, building tenants, and labour recruiters legally responsible if proven to have connections to fraud operations. Fines could reach US$1,000 (approximately Rp17 million) for each illegal worker.
“Prosecuting and taking legal action against this crime is a commitment to our nation’s future, not merely ticking a checklist,” Hun stated.
However, human rights groups and analysts remain sceptical. They argue that the Cambodian government has made similar promises before but failed to demonstrate that authorities are genuinely targeting the most influential fraud operators with strong connections.
Montse Ferrer, Corporate Crimes Project Manager at Amnesty International, told Deutsche Welle that it remains unclear whether Cambodian authorities have genuinely made the progress they claim in dismantling the fraud complexes. She warned that the government “is not being transparent.”
“We do not know which locations they have investigated and which they have not because this information is not made public,” Ferrer said.
“They also need to build trust, especially since our previous research has shown indicators of their involvement in this industry,” she added.
Meanwhile, some view the Cambodian authorities’ statements as mere rhetoric to quell international scrutiny.
“When Cambodia’s leadership claims this problem can be solved within a month, it demonstrates that they have not even begun to understand how serious this issue is,” said Jason Tower, senior expert at the Global Initiative Against Transnational Organised Crime, to Deutsche Welle.
Most illegal fraud operations expanded rapidly after the COVID-19 pandemic disrupted Cambodia’s illegal casino economy, prompting criminals to pivot to online fraud. Deep-rooted corruption combined with weak oversight and minimal transparency made Cambodia an ideal location for online fraud activity.
Phnom Penh is likely beginning to act due to mounting pressure from its close ally, China. Although many fraud networks operating in Cambodia are run by Chinese nationals, many of their primary victims are also Chinese.
In January, Cambodia extradited Chen Zhi, a Chinese-born entrepreneur, to Beijing following a joint investigation. This move indicates how closely online fraud issues are tied to Cambodia’s relationship with China.
The United States has also intensified its response as Southeast Asia-based fraud networks increasingly target victims in Western countries, particularly American citizens. In 2025, Washington took action against Huione Group, a Cambodian-based conglomerate with ties to the ruling family.
Several other tycoons have also faced sanctions, including Senator Ly Yong Phat, a close ally of Hun Sen.
Last week, Scott Schelble, deputy assistant director of the International Operations Division at the Federal Bureau of Investigation (FBI), visited Thailand, Cambodia, and Vietnam. The visit occurred as the United States stepped up regional coordination to combat fraud networks.
“This is not a small or isolated crime; this is a sophisticated criminal enterprise with substantial resources. They exploit borders, technology, and vulnerable people to generate enormous profits,” he said following the visit, according to Bloomberg.
The US Treasury estimates that Americans lost at least US$10 billion (approximately Rp170 trillion) in 2024 due to Southeast Asia-based fraud operations.
“The international community needs to maintain and strengthen pressure,” according to statements from international officials working on the matter.