Online Scam Networks in Southeast Asia and China

Chinese criminal networks are operating industrial-scale scam centers across Southeast Asia, creating a criminal enterprise that rivals the global drug trade in scale and sophistication. These operations steal tens of billions of dollars annually from victims worldwide and are fueling corruption, violence and human trafficking in the region.

According to a report from the U.S.-China Economic and Security Review Commission, these networks have established ties to the Chinese government by promoting pro-Beijing propaganda and supporting China’s Belt and Road Initiative. The commission found that these syndicates have expanded across Southeast Asia with at least implicit backing from elements of the Chinese government.

Beijing has used the presence of these scam compounds to increase its leverage over Southeast Asian governments, conduct influence and intelligence operations, and expand its security footprint in the region.

Financial Impact and U.S. Losses

The U.S. Government estimates that Americans lost at least $10 billion to Southeast Asia-based scams in 2024, with projections indicating losses grew further in 2025.

The shift toward targeting citizens of wealthy countries, such as the United States, followed selective crackdowns by Beijing on scam centers that targeted Chinese victims. This led criminal organizations to conclude they could achieve higher profits with lower risk by targeting foreign nationals.

In response, the U.S. Government has launched an interagency Scam Center Strike Force and sanctioned criminal kingpins to protect citizens from these operations.

Technological Evolution and New Trends

Chinese criminal organizations are increasingly adopting advanced technologies to evade detection and scale their operations. This includes the use of artificial intelligence tools to increase the sophistication of scams, making it difficult for potential victims to distinguish fraud from fact.

These networks are also exploiting cryptocurrency to launder stolen assets across national borders with virtual impunity.

A new trend known as foreigner butchering has emerged, where Chinese criminals return to China to open smaller-scale scam operations that exclusively target foreigners.

Human Trafficking and Global Expansion

The scam industry relies heavily on forced labor. Reports indicate that people from China, Vietnam, Ethiopia, and India have been trafficked and forced to work in these centers. In February 2025, individuals from China, Vietnam, and Ethiopia were detained after being released from centers in the Myawaddy district of eastern Myanmar.

Similarly, in February 2025, individuals trafficked under false pretenses were forced to work in online scams in Phnom Penh, Cambodia. In November 2025, Indian nationals believed to have worked at a scam center in Myanmar were repatriated via Thailand’s Mae Sot International Airport.

The operations are now expanding beyond Southeast Asia. New clusters of scam centers are emerging in the following regions:

• The Pacific Islands
• South Asia
• The Middle East
• West Africa

The U.S.-China Economic and Security Review Commission notes that China is utilizing the globalization of these centers to further expand its security presence throughout these emerging regions.