The U.S. Treasury Department on Monday sanctioned scam centers across Southeast Asia that the agency said stole $10 billion in 2024 from Americans via forced labor and violence.
The Office of Foreign Assets Control targeted nine operators in Shwe Koko, Burma, described as a notorious hub for virtual currency investment scams under the protection of the already-sanctioned Karen National Army, according to the agency in a news release.
Also sanctioned were four people and six entities in Cambodia for their roles operating forced labor compounds where workers are forced to carry out virtual currency investment scams against victims in the United States, Europe, China and elsewhere.
“The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons,” the agency said.
Americans’ losses in 2024 represent a 66% increase from the previous year.
“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,” Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said in a statement.
All property and interests in property are blocked and must be reported to OFAC.
In addition, any entities owned, directly or indirectly, individually or 50% or more by one or more named persons are also blocked. OFAC’s regulations generally prohibit all transactions by U.S. persons or within or transiting the United States that involve any property or interests in property of blocked persons.
For the last several months, the agency has examined the ownership structures and operators that perpetuate these scams and took action “to combat cyber scams and the serious human rights abuse that enables them,” the agency said.
In the scheme, Southeast Asia-based criminal organizations recruit individuals to work in scam centers under false pretenses.
“Using debt bondage, violence, and the threat of forced prostitution, the scam operators coerce individuals to scam strangers online using messaging apps or by sending text messages directly to a potential victim’s phone,” the agency said.
To gain the trust of victims, scammers promise potential romantic relationships or friendships.
Then, they persuade the victims to make purported “investments” in virtual currency on websites that are designed to look like legitimate investment platforms but are instead controlled by the scammers.
Ultimately, they steal the funds deposited on the platforms.
Targeted workers have English language skills. In focusing on Americans, they had quotas for the number of targets per day.
On May 29, OFAC sanctioned Funnull, which sold internet protocol, or IP, addresses in bulk to cybercriminals to operate scam websites.
The KNA is headquartered in Shwe Kokko, Myawaddy Township, in Burma’s southeast Karen State along the border with Thailand. KNA collaborates with the Burmese military.
Ascam Center in Yatai New City was created by She Zhijiang and Saw Chit Thu. In eight years, they transformed a small village on the Moei River into a resort city for gambling, drug trafficking, prostitution and scams targeting people around the world, particularly Americans.
Saw entrusted operations to trusted subordinates to Tin Win and Saw Min Min Oo, who host the scam centers, provide security for those facilitating illicit money flows and personally run entities that control and support scam compounds in Karen State, the agency said.
In 2022, She was arrested in Thailand based on an Interpol Red Notice issued by China, which has continued to seek his extradition from Thailand.
The Treasury Department is also targeting scam centers in Cambodia with many built as casinos by Chinese criminals, but they became hubs for virtual currency investment scams when that activity was more profitable.
Named companies were T C Capital Ltd. and K B Hotel Co. Ltd. in Sihanoukville and Heng He Casino in Bavet, Cambodia. They own casinos and hotels where enslaved workers are forced to conduct virtual currency scams.
In June, the U.S. Department of Justice announced a crackdown on North Korea using people to pose as tech workers to earn money and steal sensitive information for the regime. In two unsealed charging indictments in Massachusetts and Atlanta, schemes were outlined to trick U.S. companies into hiring people who funneled their paychecks to the government and stole sensitive information and cryptocurrency.
