U.S. Slaps Southeast Asia Cyber Scams with Sanctions
(MENAFN) The United States on Monday announced sanctions targeting online scam networks in Southeast Asia responsible for defrauding Americans of at least $10 billion in 2024.
US Secretary of State Marco Rubio revealed that the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned nine individuals linked to fraudulent schemes centered at the Shwe Kokko operation in Myanmar. The site reportedly operates under the protection of the Karen National Army (KNA), an ethnic militia in southeastern Myanmar.
OFAC also imposed penalties on four individuals and six entities connected to forced labor camps in Cambodia. According to US authorities, workers in these camps are coerced into carrying out cryptocurrency investment fraud aimed at victims in the US, Europe, China, and beyond.
“Criminal actors across Southeast Asia have increasingly exploited the vulnerabilities of Americans online,” Rubio said, stressing the sanctions’ role in shielding Americans from “industrial-scale fraud, forced labor, physical and sexual abuse.”
John K. Hurley, under-secretary for terrorism and financial intelligence at the Treasury Department, highlighted the wider consequences, stating, “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.”
This latest move follows earlier sanctions imposed in May against the KNA, designated as a transnational criminal organization, along with its leader Saw Chit Thu and his sons for involvement in cyber scams, human trafficking, and cross-border smuggling.
All assets and interests of the designated individuals within the US or controlled by US persons are now frozen. Entities owned 50% or more by these sanctioned persons are also subject to penalties.
US officials estimate Americans lost at least $10 billion to Southeast Asia-based fraud operations in 2024, marking a sharp 66% increase from the prior year.
US Secretary of State Marco Rubio revealed that the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned nine individuals linked to fraudulent schemes centered at the Shwe Kokko operation in Myanmar. The site reportedly operates under the protection of the Karen National Army (KNA), an ethnic militia in southeastern Myanmar.
OFAC also imposed penalties on four individuals and six entities connected to forced labor camps in Cambodia. According to US authorities, workers in these camps are coerced into carrying out cryptocurrency investment fraud aimed at victims in the US, Europe, China, and beyond.
“Criminal actors across Southeast Asia have increasingly exploited the vulnerabilities of Americans online,” Rubio said, stressing the sanctions’ role in shielding Americans from “industrial-scale fraud, forced labor, physical and sexual abuse.”
John K. Hurley, under-secretary for terrorism and financial intelligence at the Treasury Department, highlighted the wider consequences, stating, “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.”
This latest move follows earlier sanctions imposed in May against the KNA, designated as a transnational criminal organization, along with its leader Saw Chit Thu and his sons for involvement in cyber scams, human trafficking, and cross-border smuggling.
All assets and interests of the designated individuals within the US or controlled by US persons are now frozen. Entities owned 50% or more by these sanctioned persons are also subject to penalties.
US officials estimate Americans lost at least $10 billion to Southeast Asia-based fraud operations in 2024, marking a sharp 66% increase from the prior year.
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