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How Cambodia became a hub for organised scam syndicates targeting individuals in the UK

An alarming trend attracting worldwide attention is the rise of Cambodian fraud factories. These large-scale operations involve the trafficking and exploitation of thousands of individuals by crime syndicates. These victims are coerced to defraud victims across the globe—including many here in the UK.   Whilst we specialise in recovering funds lost to scams for our valued […]

How Cambodia became a hub for organised scam syndicates targeting individuals in the UK
An alarming trend attracting worldwide attention is the rise of Cambodian fraud factories. These large-scale operations involve the trafficking and exploitation of thousands of individuals by crime syndicates. These victims are coerced to defraud victims across the globe—including many here in the UK.   Whilst we specialise in recovering funds lost to scams for our valued clients, we also recognise the importance of financial education. By understanding how these scams operate, we can help protect ourselves and others. Keep reading to explore the rise of Cambodian fraud factories and how you can stay safe from falling victim to one.    

What are fraud factories? 

Fraud factories are large-scale scam operations run by organised crime syndicates where trafficked workers are forced to commit online fraud. These operations, primarily located in Cambodia, function like call centres. But instead of providing legitimate services, they engage in fraudulent activities targeting individuals worldwide.   A UN report in August 2023 estimated that a total of 220,000 individuals were currently being held captive for the purpose of fraud factories across Cambodia and Myanmar.  

How do these fraud factories operate?  

The criminal syndicates running these operations lure individuals to Cambodia with fake job offers, often advertising lucrative roles in customer service or cryptocurrency investments. Many victims travel from China, Vietnam, India, Malaysia, and parts of Africa, only to have their passports confiscated upon arrival, leaving them trapped.   

What types of scams are fraud factories using?  

Inside the compounds, victims are trained in deception tactics and forced to operate scams under strict surveillance. Using fake identities, they contact potential victims through:    The goal is to build trust before persuading individuals to invest in fraudulent schemes, typically involving cryptocurrencies.  Although these scam operations are based in Cambodia, their reach extends globally. British victims have lost thousands of pounds to criminals working from these centres.  Conditions within these factories are akin to modern-day slavery. Victims endure long hours under constant monitoring, and those who fail to meet scam quotas often face physical abuse, food deprivation, and threats of sexual violence.   The compounds are heavily guarded, making escape nearly impossible. Those caught attempting to flee may be subjected to brutal punishments.   

How are fraud factories being shut down? 

In recent years, Cambodian authorities and international organisations have intensified efforts to dismantle fraud factories, leading to notable arrests and interventions.   

Cambodian police actions 

In September 2022, Cambodian police raided SEZ zones like Sihanoukville, rescuing over 1,000 foreign nationals from three scam compounds.   During these raids, officials recovered 9,000 mobile phones, 800 computers, and disturbing evidence such as handcuffs and electric shock chairs, highlighting the severe conditions endured by victims.   In October 2024, another major police operation led to the arrest of nearly 1,000 Chinese and South Korean nationals suspected of running large-scale scam operations.   

International actions 

In December 2023, the United States, United Kingdom, and Canada imposed coordinated sanctions on 14 individuals and entities linked to Cambodia’s online scamming industry. Indian authorities have also taken action, cracking down on individuals involved in trafficking citizens to Cambodia for these scam compounds.     

Is there an end in sight? 

Unfortunately, fraud factories are unlikely to disappear anytime soon due to several key factors: 
  • Massive profits: These operations generate billions of dollars globally, giving criminals strong financial incentives to keep them running. 
  • Corruption & weak law enforcement: Bribed officials often shield these operations, making law enforcement efforts inconsistent and ineffective. 
  • Shifting locations: Even when authorities shut down scam centres in Cambodia, they quickly relocate to other countries like Myanmar, Laos, and the Philippines. 
  • A constant supply of victims: As long as people fall for scams, fraud factories will continue to thrive, preying on new victims worldwide. 
 

How to protect yourself from fraud factories 

Although governments are working to combat these scams, there are things you can do to avoid falling victim to them.   

1) Be cautious of online messages from strangers 

Scammers often pose as friendly acquaintances or romantic interests on social media and dating apps. It’s a red flag if someone you met online suddenly starts talking to you about investments or money.  

2) Verify investment opportunities 

Avoid get-rich-quick schemes, especially cryptocurrency or forex investments promoted by online contacts. Scammers often use high-pressure tactics and unrealistic returns to lure victims in.   Before investing, check if a financial institution is registered with regulators like the Financial Conduct Authority (FCA) or Companies House. A legitimate investment opportunity will always be transparent about risks and regulations. 

3) Never share personal or banking information 

Scammers often gather personal details to gain trust before stealing money. They may ask seemingly harmless questions to build a profile on you, making their fraud more convincing. Never send funds, share passwords, or provide sensitive banking details to someone you haven’t met in real life, no matter how trustworthy they seem. 

4) Report suspected scams 

If you’ve been targeted by a scam, you should report it immediately.   Action Fraud UK is the UK’s national fraud reporting service. They allow you to report fraud online or by phone. You should also contact your bank to block transactions and alert them to potential fraud.   If you’ve lost money to a scam, WRS can provide a free consultation to assess your options and help you take the next steps.      

Stay vigilant and spread awareness 

While authorities work to dismantle fraud networks, scammers are constantly evolving their tactics to target new victims. The best defence is education, scepticism, and swift action. By recognising and avoiding scams, we can collectively weaken this global fraud network over time.  If you’re ever unsure about an investment opportunity or suspect you’ve been scammed, contact WRS for a free, confidential consultation.  To learn more about this topic, you can read this helpful Sky News article. It includes an account from someone who was forced to work inside a Fraud Factory in Cambodia.