A gold-hued skyscraper is rising above the traffic-clogged streets of Phnom Penh, a monument to the spoils generated by transnational cybergangs that have stolen billions of dollars from unsuspecting Americans and others worldwide.
Cambodia, a country of 18 million people, has become a hub for online scams, with predominantly Chinese syndicates operating in the country. The Treasury Department has sanctioned several individuals and companies for their alleged connection to scam operations, including a 64-year-old China-born convict and casino mogul, Xu Aimin.
The country's government has launched a nationwide crackdown on online scams, with hundreds of raids and the mass release of workers from scam compounds. However, many large operations have scattered, making them harder to track.
A report last year estimated annual revenue from scam syndicates was as high as $19 billion, equivalent to nearly 40% of the country's gross domestic product.
The reputational damage from Cambodia's growing association with online scams has hurt the country's formal economy, with ticket sales at its world-famous Khmer monuments down more than half from before the Covid-19 pandemic.
Activists and family members trying to free scam workers forced to work at Cambodian scam centers say they struggled to get police to intervene, even when they gave exact locations.
The crackdown has prompted many large operations to scatter, making them harder to track. However, authorities have raided more than 250 scam centers and launched legal cases against some 750 alleged ringleaders.
