Americans lost a staggering $10 billion to Southeast Asian cyber scam networks in 2024, marking a 66 percent surge from the previous year, according to a new Treasury Department announcement detailing sanctions against 19 targets operating in Burma and Cambodia.
The Treasury’s crackdown targets sophisticated criminal enterprises that combine modern slavery with digital fraud, forcing thousands of trafficked individuals to perpetrate scams under threat of violence. Under Secretary John K. Hurley emphasized the dual threat these operations pose: “Southeast Asia’s cyber scam industry not only threatens the well-being and financial security of Americans, but also subjects thousands of people to modern slavery.”
Criminal Paradise: Inside Shwe Kokko’s Scam Empire
Nine of the sanctioned targets operate in Shwe Kokko, Burma, a notorious hub for virtual currency investment scams running under the protection of the Karen National Army (KNA). The remaining ten are based in Cambodia, where similar operations have flourished in recent years.
At the center of this criminal ecosystem sits Yatai New City, a resort-like compound developed by Chinese national She Zhijiang in collaboration with KNA leader Saw Chit Thu. What began as a tourism development quickly transformed into something far more sinister. The complex now serves as ground zero for scams, gambling, drug trafficking, and forced labor operations that include physical abuse and forced commercial sex work, according to Treasury officials.
How do these scam centers actually operate? Victims are lured from around the world with promises of legitimate employment, only to have their passports confiscated upon arrival. They’re then detained in compounds where they’re forced to perpetrate online scams against Western targets, primarily Americans. Those who fail to meet quotas face beatings, while some are forced into commercial sex work. Many families have reportedly paid ransoms to secure their loved ones’ release.
Military Connections and Criminal Enterprise
The KNA’s role in these operations extends beyond mere tolerance. The group actively collaborates with the Burmese military, controlling territory in Karen State where it profits from transnational crime. Treasury documents reveal that KNA leaders earn substantial income both from the scam centers themselves and from providing utilities to these operations.
Among the sanctioned individuals is Tin Win, who runs the utility company keeping the lights on in these scam centers. Another key figure, Saw Min Min Oo, a former KNA colonel, manages various KNA-affiliated companies supporting the scam compounds, including Myanmar Yatai International Holding Group Co., Ltd.
She Zhijiang, the primary architect behind Yatai New City, has operated under multiple pseudonyms and acquired both Burmese and Cambodian citizenship. In 2022, he was arrested in Thailand based on an Interpol Red Notice issued by China, which has been seeking his extradition ever since.
Cambodia’s Casino-Turned-Scam Centers
Across the border in Cambodia, a similar pattern has emerged. Many facilities that originally operated as casinos have pivoted to virtual currency investment scams when that business model proved more lucrative. Companies like T C Capital Co. Ltd and K B Hotel Co. Ltd own complexes from which these scams operate, including the Golden Sun Sky Casino and Hotel in Sihanoukville.
“Chinese criminal networks operate industrial-scale scam centers across Southeast Asia that steal tens of billions of dollars annually from people around the world,” notes a U.S.-China Economic and Security Review Commission report. “A massive criminal enterprise that rivals the global drug trade in scale and sophistication.”
The Philippines-based Funnull Technology Inc. represents the digital infrastructure supporting these operations. Treasury officials claim the company facilitates “hundreds of thousands of websites” dedicated to these scams, resulting in over $200 million in reported U.S. losses. The average individual victim loses more than $150,000.
Sanctions and Enforcement
The Treasury’s sanctions draw on multiple executive orders targeting transnational criminal organizations, cyber-enabled malicious activities, serious human rights abuses, and threats to Burma’s stability. President Trump and Secretary Bessent have directed the Treasury to “deploy the full weight of its tools to combat organized financial crime and protect Americans,” according to Hurley’s statement.
But the challenge remains enormous. These criminal networks continue to evolve, with some evidence suggesting implicit backing from elements of the Chinese government. The industrial scale of these operations—stealing tens of billions annually while trafficking thousands of victims—presents a complex enforcement challenge that crosses multiple international boundaries.
For now, American consumers remain the prime target, with losses climbing 66 percent in a single year. Behind those numbers lie thousands of individual stories: retirees losing life savings, investors watching their crypto portfolios vanish, and countless others falling victim to increasingly sophisticated social engineering tactics that blur the line between legitimate investment and elaborate fraud.
