U.S. Steps Up Efforts to Dismantle CCP-Backed Scam Compounds in Southeast Asia

Many Chinese people are trapped in scam compounds.(Screenshot from the internet)

[People News] The U.S. government has mobilized the Federal Bureau of Investigation (FBI), the Department of Justice, and the State Department to intensify efforts to dismantle Southeast Asian scam compounds allegedly backed by the Chinese Communist Party (CCP). The CCP is described as the primary force behind these operations. These compounds are said not only to conduct telecom fraud and organ trafficking as part of illicit industries, but also to serve as bases for intelligence gathering and cyberattacks.

According to a report by The Epoch Times, Sherbul recently concluded visits to Thailand, Cambodia, and Vietnam, and observed several large scam hubs from a distance. He said that only by seeing them firsthand can one truly grasp their scale, as it fundamentally changes one’s perception of the threat. “It is clear that Chinese (CCP) organized crime groups operating in Southeast Asia are targeting American citizens every day,” he said.

Data from the FBI’s Internet Crime Complaint Center show that in 2025 alone, more than 80,000 complaints were filed by Americans regarding telecom scam schemes, resulting in losses exceeding $2.9 billion.

He added, “These are not small-scale or isolated crimes; they are highly organized, well-resourced criminal enterprises exploiting borders, technology, and vulnerable populations for enormous profit.”

Sherbul said these activities have long surpassed simple online fraud and have evolved into complex networks involving human trafficking and forced labor.

U.S. Cooperates with Southeast Asian Countries to Eliminate Scam Compounds

He said the FBI is deploying agents to the Royal Thai Police and working with authorities in Cambodia and Vietnam to expand regional joint task forces, aiming to turn Southeast Asia into a “no-go zone” for these criminal groups, which are known to relocate across borders to evade detection.

Sherbul emphasized that this is not a “deep-rooted problem” confined to a single country, but a highly profitable and easily replicable regional industry. Once law enforcement pressure intensifies in one location, scam compounds can quickly move to another country or new site. Therefore, only coordinated regional and cross-border action can make it difficult for such operations to survive anywhere in the region.

He reiterated that cross-border cooperation is essential for long-term success, especially among Thailand, Cambodia, Vietnam, and Malaysia. Only synchronized pressure and coordinated enforcement can effectively counter groups exploiting jurisdictional gaps and prevent any country from becoming a safe haven.

Sherbul said the FBI will continue to “aggressively pursue” these criminal groups worldwide and will not allow national borders to shield them.

He added, “Criminals should not assume that targeting Americans will be protected by borders. We know where you are, and we will bring you to justice.”

Protecting Americans from Overseas Fraud Is a Top Priority for the Trump Administration

U.S. State Department Principal Deputy Spokesperson Tommy Pigott said, “The Trump administration has made protecting American citizens from overseas fraud a top priority.”

A State Department official stated that transnational organized crime—particularly CCP-backed scam syndicates—has developed into an industrial-scale operation in Southeast Asia. These scam centers often recruit workers from other countries, many from China, through deceptive means and then force them into labor.

The United Nations estimates that in 2023 alone, 120,000 people in Myanmar were engaged in scam operations. A new report from the Office of the UN High Commissioner for Human Rights estimates that at least 300,000 people have been trafficked into Southeast Asia to work in online scam operations.

In September 2025, the U.S. Treasury Department announced sanctions against such scam centers, including nine targets in Shwe Kokko, Myanmar, and ten in Cambodia.

U.S. government agencies have advised the public not to send money to people they have never met in person and not to share personal information online to avoid falling victim to such scams.

CCP Alleged to Be the Real Power Behind Southeast Asian Scam Compounds

In scam compounds in Myanmar and Cambodia, many groups are said to be under CCP control. Two well-known companies are mentioned. The owner of “Asia-Pacific New City,” She Zhijiang, was extradited from Thailand to China last year. The owner of the “Prince Group,” Chen Zhi, has been indicted in the United States.

On October 14, 2025, the Prince Group in Cambodia was designated a criminal organization by the U.S. Treasury Department. Founder Chen Zhi was indicted by the United States for alleged involvement in large-scale cryptocurrency fraud, human trafficking, and transnational money laundering. Media reports state that Chen Zhi is an agent of the CCP’s public security system. The Prince Group is described as a base for the CCP’s transnational repression and abductions.

In November 2025, She Zhijiang, founder of the gambling conglomerate “Asia-Pacific New City” in Myawaddy, Myanmar, was extradited from Thailand to China. According to media reports, She claimed to be an agent of China’s Ministry of State Security. He said this during a 2024 interview with Al Jazeera’s “Eastern 101” program via a video visitation system while detained in a Thai prison. She said he was recruited as a state security agent in 2016 and became a Cambodian citizen in 2017 under instructions from China’s Ministry of State Security, which also directed him to establish the Asia-Pacific Group. He further claimed that the Shwe Kokko area, where Asia-Pacific New City is located, is part of the CCP’s “Belt and Road” initiative.

Senior commentator Tang Jingyuan stated that the Belt and Road initiative is closely connected to scam compounds. He said many of these compounds are CCP-linked operations that not only engage in telecom fraud and organ harvesting but also serve as bases for intelligence gathering and cyberattacks. Professional hackers are reportedly stationed in these compounds. They target not only Chinese victims but also many people in Europe and the United States. According to The Wall Street Journal, thousands of Americans fall victim each year to so-called “pig-butchering” scams, including officials, civil servants, and even military personnel. Once victimized, their personal data may be accessed by scam compounds and used for intelligence purposes.

Because scam compounds in Myanmar’s Myawaddy region are closely connected to telecom supply chains within China, enforcement has uncovered links. In 2023, Kunming Customs seized more than 11,500 undeclared SIM cards used for telecom fraud. Chinese media previously reported that one Chinese province supplied millions of unregistered SIM cards to Myanmar, facilitating scam operations.△