The United States has launched a new wave of sanctions against criminal networks in Southeast Asia that exploit forced labor to scam Americans online, escalating its pressure on a problem that has mushroomed into a global crisis. The move, announced by the US Treasury Department on September 8, targets 19 individuals and entities linked to large-scale scam centers in Myanmar and Cambodia-operations that experts describe as brutal, exploitative, and highly profitable.

According to the Treasury Department, Americans lost an estimated $10 billion to these schemes in 2024 alone, marking a staggering 66 percent increase from the year before. Officials say much of this fraud originates from organized scam compounds staffed by trafficked workers who are beaten, enslaved, or forced into prostitution when they fail to meet criminal quotas.

The sanctions announcement placed particular emphasis on Shwe Kokko, a notorious border town in Myanmar’s Kayin State. The area has long been associated with illicit online activities, including investment fraud, gambling, and human trafficking. Shwe Kokko is controlled by the Karen National Army (KNA), a militia allied with Myanmar’s ruling military junta.

Earlier this year, Washington sanctioned the KNA and its leader, Saw Chit Thu. The latest measures widen the net by targeting Chinese-born businessman She Zhijiang, who co-developed Yatai New City, a sprawling compound in Shwe Kokko that has become emblematic of Southeast Asia’s scam industry. She holds citizenship in both Myanmar and Cambodia and has built a network of corporate ventures across the region, including ties to a Special Economic Zone in Cambodia.

“Scam operators at Yatai New City reportedly have lured recruits from around the world under false pretenses, only to detain and........

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