Cambodia steps up scam crackdown amid effectiveness concerns

Cambodia is intensifying efforts to investigate major cyber fraud operations, as anti-scam minister Chhay Sinarith revealed, in response to criticism that the government's crackdown has not effectively targeted those ultimately responsible for these schemes. Speaking at a global anti-scam conference in Phnom Penh, Chhay emphasized that pursuing legal action against those involved in cyber scams requires substantial time and evidence, regardless of whether the target is the mastermind, co-conspirator, owner, enabler, or protector.

He acknowledged that information from international partners has aided in apprehending some suspects, but cautioned that premature disclosure of investigations could prompt suspects to flee the country.

During the conference, Cambodia welcomed representatives from over a dozen nations, including the US and China, to discuss strategies for combating a sector that has damaged the country's image and economic standing. Southeast Asian nations, including Cambodia, have become focal points for enormous scam operations, particularly since the COVID-19 pandemic.

These operations often involve trafficked workers subjected to harsh conditions and forced to defraud individuals online for substantial sums. The US, for instance, reported that scam operations in the region had defrauded Americans of approximately $10 billion in 2024.

Chhay claimed last month that Cambodia had eliminated large-scale scam compounds following a year-long crackdown, though he did not disclose a detailed list of the sites targeted. However, analysts remain skeptical, pointing out that high-level figures and protectors of the scam industry have largely evaded justice. John Wojcik, a senior analyst at blockchain intelligence firm TRM Labs, noted that while some large compounds have been dismantled and dispersed into smaller, more covert operations, many others continue to function at a large scale.

The underlying technology, payment systems, and money-laundering networks associated with this industry remain active.

Chhay also stated that authorities are broadening their investigation into the financial network of Prince Group, a Cambodian conglomerate that the US alleges is a front for multi-billion-dollar online fraud and money laundering activities. The Chinese-born founder of Prince Group, Chen Zhi, was arrested and deported from Cambodia earlier this year.

Reporters were given access to two facilities outside of Phnom Penh, which authorities identified as scam centers linked to Prince Group. These complexes, according to officials, housed thousands of workers and featured deceptive elements like a replica Singaporean police station allegedly used for impersonation fraud. Prince Group's legal representatives did not immediately respond to requests for comment.