PHNOM PENH: Having successfully shuttered nearly 700 major online scam hubs nationwide, Cambodian law enforcement agencies are now turning their focus towards the masterminds behind the operations.
The work is far from over. According to Cambodian Information Minister Neth Pheaktra, syndicates have since shifted to a new tactic of smaller operations designed to evade detection.
"Our work is not over. The government’s next action is to continue investigating their financial networks and the masterminds behind the crimes.
"When we crack down on the large-scale scam compounds, they move to small-scale operations. We will eradicate all these small groups,” he told Bernama at the recent International Conference on Combating Online Scams in Phnom Penh involving delegates from more than 25 countries.
Under severe pressure from authorities, scam syndicates have switched to smaller operations hidden inside hotels, guesthouses, apartments and rural provinces, according to investigators.
Cambodia’s strategic location adjacent to Thailand, Laos, and Vietnam in mainland South-East Asia has made it attractive to cross-border criminal networks.
Legal loopholes, and lax border controls and visa policies, have also been cited as incentives for criminal activities to grow into high-volume illicit operations.
Over the years, kingpins have built ecosystems consisting of channels for moving illicit profits, property owners that provide premises, recruitment networks targeting mostly young people from developing countries, and sophisticated methods to deceive victims abroad.
The United States Department of State said Americans lost at least US$10 billion to scam operations in South-East Asia in 2024.
Neth Pheaktra said scam operations are organised, clandestine and hard to identify, and for more than two years, the government faced challenges to dismantle them.
"They use Bitcoin or other cryptocurrencies that are outside the traditional banking system to move money,” said Neth Pheaktra.
So far, the authorities have frozen financial assets worth US$300 million. Some 30,000 foreign nationals suspected to have been involved in scams have been deported this year.
The growth of online scams, along with illegal gambling, has exposed Cambodia’s financial sector to illicit funds and money-laundering risks.
The negative publicity generated by the illicit industry has tarnished Cambodia's image and weighed on its economy.
Losses in scam activities continue to balloon every year. The United Nations Office on Drugs and Crime in July said that scam networks defrauded people across the Asia-Pacific region of between US$88 billion and US$114 billion last year.
The Cambodian National Police said Cambodians have lost about US$26 million (RM106 million) to online scammers since last year.
Prime Minister Hun Manet has vowed a crackdown, including by strengthening cooperation with international law enforcement partners. Last year, the government established the Cambodia Commission for Combating Online Scams to spearhead investigations. This year in March, Cambodia enacted its Law on Combating Online Scams.
At the conference, Hun Manet said Cambodia will "not be a safe haven” for online scammers. - Bernama
