Cambodia is taking action against online scams with its parliament passing the country's first law to address the rising issue.
All 112 members of Cambodia’s parliament present voted to approve the legislation, officially titled the Law on Anti-Technology Fraud, the Associated Press reported on March 30.
The law introduces five new offenses aimed at rooting out modern, internet-based crimes, including cybercrime, directing scams, recruiting/training scammers, malicious collection of personal data, and specialized money laundering.
Southeast Asia has become a major hub for cyber scam compounds. Years of investigative reporting indicate these semi-militarized facilities force trafficked individuals — or people lured by the promise of fake job offers — to operate online scams, including romance scams, crypto investment schemes, and other types of fraud.
Reuters noted in an article on Friday that the Cambodian government has long downplayed the existence of these scam compounds, making the recently passed law particularly significant.
On Thursday, Britain sanctioned the operators of what was believed to be the largest fraud complex in Cambodia and an online crypto marketplace used to trade stolen personal data, Reuters reported.
The new law, which still requires Cambodia's King Norodom Sihamoni for final signature, imposes two to five years in prison and fines of up to $125,000 for those convicted of online scams.
Directors of scam compounds face increased fines reaching $250,000 and five to 10 years in prison. Instances of human trafficking, illegal confinement or violence could bump the prison penalty to between 10 and 20 years, the AP reported.
Blockchain analytics firm Chainalysis found that pig butcher scams — a type of romance scam so named because victims are buttered up over time — are on the rise and increasingly reliant on crypto.
The U.S. Federal Trade Commission has previously estimated annual losses tied to romance scams could exceed $1 billion, while the FBI has identified crypto-linked investment fraud as its largest loss category.
Crypto firms are also increasingly collaborating with law enforcement to track, freeze, and recapture stolen funds. In 2023, Tether froze $225 million in USDT linked to a Southeast Asian fraud syndicate after a Department of Justice investigation, a landmark collaboration at the time.
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