Why Cambodia Has Become a Haven for Scam Syndicates

Cambodia has emerged as a global hotspot for online scamming. According to a UN report, an estimated 100,000 people are held in “scam centers” in Cambodia, generating billions of dollars in revenue annually. The COVID-19 pandemic provided an opportunity for criminal groups, mainly led by Chinese individuals, to exploit abandoned hotels and casinos (especially in Sihanoukville and Poipet) to establish industrial-scale “scam training” areas. Many international reports (Amnesty, UNODC, USIP, Reuters) indicate that this situation thrives partly due to Cambodia’s weak legal and enforcement systems, along with implicit collusion between local authorities and criminals.

Legal and Law Enforcement Environment in Cambodia

Weak Rule of Law, Widespread Corruption: Cambodia ranks 141st out of 142 on the World Justice Project’s Rule of Law Index (only ahead of Venezuela). This reflects extremely limited legal capacity and crime control. According to Amnesty, authorities are “largely powerless” or conduct only superficial investigations into scam cases, with even signs of police “protecting” Chinese criminals (they don’t close known centers accused of human rights violations). A scam boss confidently declared that “the Chongqing gang will decide Sihanoukville’s stability,” indicating that criminals are powerful enough to manipulate local security.

Laws Lagging Behind Cybercrime: Cambodia’s legal system lacks specific regulations for new forms of high-tech fraud. The police force lacks training and experience in investigating international cybercrime; many officers do not recognize sophisticated criminal signs. Free movement within ASEAN (visa-free) and loose telecommunications infrastructure also create loopholes for criminals to easily travel and exchange money across borders with minimal control.

Lack of Decisive Law Enforcement: Although the Cambodian government has announced a crackdown on scams (establishing a special committee in early 2025 headed by Prime Minister Hun Manet), police campaigns remain limited in practice. According to Amnesty and Reuters, more than two-thirds of scam centers in Cambodia are not thoroughly investigated or continue to operate after half-hearted raids. Police often only rescue a few victims while the scam operators nonchalantly escape. This lack of strictness makes criminals increasingly disregard Cambodian law.

Oversight and Management of Cybercrime, Online Scams

Scale and New Nature of Crime: According to the UN, hundreds of thousands of people have been abducted and deceived into scam centers in Southeast Asia (with Cambodia and Myanmar as epicenters) since the pandemic. Victims are often highly educated and recruited online, then forced to carry out complex scams through messages or calls involving romance scams or financial fraud. This sophistication far exceeds the traditional experience of Cambodian police.

Lack of Technical Capacity and Information Sharing: Cambodia has not invested enough in specialized cybercrime police forces. A UN report indicates that many officials lack the capacity and tools to investigate and prosecute transnational scam organizations. The decentralization of communication channels (social media, Telegram, cryptocurrency wallets, online “black markets”) also makes it difficult for investigators.

Loose Payment and Banking Systems: Scam criminals often use unlicensed financial services or underground banks to launder money. For example, these groups once established an entire “underground payment market” (like Huione Guarantee) in Phnom Penh, processing billions of USD in electronic transactions, which was then deregistered but continued to operate as a shadow bank. The overlapping financial regulatory bodies and loopholes in transaction control have allowed scam money to flow freely within the Cambodian economy.

Domestic and International Criminal Organizations

Chinese Gangs Dominate: Most large-scale scam centers in Cambodia are set up by Chinese gangs – from migrating ‘Jianghu’ criminals to organized syndicates. Amnesty and other reports state that Chinese scam bosses recruit laborers online, deceive or sell them to Cambodia to work under conditions of slavery and coercion. These groups are highly professional, have remote command systems, and use weapons and armed guards to surround their scam “factories.”

Alliance with Local Criminals: Scam criminals also collaborate with Cambodian gangs and officials. Reports from Humanity Research and UNODC show that Chinese companies like Prince Group and Huione Group have close ties with high-ranking Cambodian officials and are believed to be “connection points” for transnational scam operations. Simultaneously, some local tycoons and officials are accused of directly benefiting from these networks, allowing them to operate openly without fear of being dismantled.

Sophisticated and Enclosed: The scam industry has evolved into a “criminal industrial chain” from victim sourcing to payment and money laundering. They use underground banks and USDT cryptocurrency to withdraw cash, moving citizens across borders between multiple countries undetected. This model is highly “specialized” and self-contained, allowing a single group to operate in multiple countries simultaneously, from Cambodia, Myanmar, Laos… to Africa and South America.

Role of Special Economic Zones, Casinos, and Border Areas

Role of Special Economic Zones (SEZs): SEZs like Bavet (Svay Rieng), Poipet (Banteay Meanchey), or even the “special district” of Phnom Penh have been exploited by criminals as hideouts and operational bases. For example, the Thanh Hoa Provincial Police (Vietnam) reported that scam operators rented houses in a “self-governing” zone (SEZ) in Bavet city, equipped by Chinese owners with 20 computers and Wi-Fi to run transnational scam operations. These SEZs are often near borders, with lax management, allowing criminals to enter, set up scam offices, and move between Cambodia and neighboring countries easily.

Abandoned Casinos and Hotels: Cambodia previously allowed online gambling, leading to a casino boom, but banned it in 2019. Since then, many abandoned casinos and hotels in Sihanoukville, Poipet, etc., have been “taken over” by Chinese gangs to form fortified scam “bases” with barbed wire fences and armed guards. They have transformed these into prison-like “compounds,” enclosed, holding hundreds of people to conduct romance and financial scam calls.

Border Area with Thailand: Border towns like Poipet and Bavet are international transit hubs. In Poipet, a joint Thai-Cambodian police force raided a condominium scam building in 2025, rescuing 215 victims. Many cases show that criminals establish their “headquarters” right on the border to lure Chinese, Lao, and Thai citizens to enter for work, then transfer them to Cambodia. The light border checkpoints and loose immigration control (visa-free) make the border region an ideal place to recruit labor and move discreetly within scam networks.

Reports and Assessments from International Organizations, Reputable Media

Major international organizations and prominent media outlets have warned that Cambodia has become a “global scam center.” Amnesty International (2025) published the report “I Was Someone Else’s Property,” detailing 53 scamming compounds in Cambodia, showing “evidence of collusion between Chinese criminals and Cambodian police” and a state that is “powerless, partly complicit.” The United Nations and RFA cited a UN report (2023) noting Cambodia and Myanmar as two new “epicenters” of human trafficking for forced scamming, with at least 100,000 victims and billions of USD in scam revenue. The UNODC report (2025) affirmed that Cambodia is among “areas with weak legal frameworks,” with scam networks anchored in SEZs and casinos, evidenced by rapidly increasing infrastructure in Sihanoukville, Phnom Penh, Koh Kong, etc. Numerous media investigations (Reuters, Al Jazeera, BBC, CNBC) have also exposed the scale of Cambodia’s “scam empire,” estimated to account for half of the country’s GDP. All indicate that the level of scamming in Cambodia has spiraled out of control, linked to local institutional and economic factors.

Cambodian Government and International Community Response

Cambodia’s Commitments and Measures: Following criticism, the Cambodian government affirmed the establishment of an “Inter-Ministerial Steering Committee for Combating High-Tech Fraud” (headed by Prime Minister Hun Manet) in January 2025. Officials have stated they will crack down on “scam nests,” but so far, measures remain fragmented. Many media reports indicate that police only temporarily seal off areas or force victims to contact them directly for rescue.

International Cooperation: Cambodia is under pressure to cooperate with other countries. China has coordinated with Phnom Penh to arrest and repatriate hundreds of Chinese cybercrime suspects for investigation. The two sides also signed an agreement to combat organized crime, jointly raiding scam hotspots involving Chinese citizens. Cambodia also cooperates with Thailand; for example, in early 2025, Thai-Cambodian police jointly rescued 215 victims held in Poipet. Simultaneously, Cambodia banned online gambling in 2019 to eliminate the basis for scams.

Pressure from the International Community: Many governments and global organizations have criticized or warned Cambodia. The Prime Minister of Thailand once urged Cambodia to tighten its borders and suppress scam operations. Amnesty and the United Nations publicly criticized Cambodia for “standing idly by” in the face of human rights violations at the compounds. The international community also advises victims and increases intelligence sharing to counter the problem. In response, the Cambodian government has repeatedly denied supporting criminals, calling for cooperation instead of blame. However, the trend of increasing international cooperation (between Cambodia, China, Thailand, the US) and public pressure is compelling Phnom Penh to take stronger action in the near future.