U.S. sanctions Southeast Asian scam centers targeting Americans

The U.S. Department of the Treasury has imposed sanctions on criminal networks in Southeast Asia involved in large-scale online scams targeting Americans. The move comes after Americans reportedly lost at least $10 billion to such operations in 2024, according to U.S. government estimates.

Speaking on the sanctions, U.S. Secretary of State Marco Rubio said, “Criminal actors across Southeast Asia have increasingly exploited the vulnerabilities of Americans online.”

The sanctions, issued by the Treasury’s Office of Foreign Assets Control (OFAC), target nine individuals and entities operating in Shwe Kokko, a scam hub in Burma, which functions under the protection of the already sanctioned Karen National Army (KNA). The KNA is described as a transnational criminal organization that facilitates online scams against Americans and exploits workers in forced labor.

OFAC also sanctioned four individuals and six entities in Cambodia for operating forced labor compounds. Workers in these compounds are coerced into carrying out virtual currency investment scams targeting victims in the United States, Europe, China, and other regions.

“These sanctions protect Americans from the pervasive threat of online scam operations by disrupting the ability of criminal networks to perpetuate industrial-scale fraud, forced labor, physical and sexual abuse, and theft of Americans’ hard-earned savings,” Rubio said.