Washington, August 8: Chinese-origin gangs are becoming a significant global threat, with U.S. citizens losing billions annually due to online scams. Human trafficking, money laundering, and other international crimes are also on the rise. Many scam networks operating in Myanmar, Cambodia, and Laos lure individuals with false job offers. Once there, victims have their passports confiscated and are often tortured into committing online fraud.
The U.S. has initiated strict actions against these networks. In March, President Donald Trump issued an order directing relevant departments to identify and dismantle these gangs. Visa restrictions have been imposed on individuals linked to cyber crimes, and an international coalition of 13 countries has been formed to combat these scam networks, as reported to the Senate Foreign Relations Committee.
Officials revealed that these networks have grown so large that they now possess their own infrastructure, staff, and operational systems. In 2025, U.S. citizens suffered approximately $12.5 billion in losses from such scams, although the actual figure may be even higher.
The reported losses in 2025 were three times greater than in 2023, affecting individuals across all 50 states. Furthermore, countries in East Asia and the Pacific are estimated to have lost up to $114 billion last year due to these gangs.
Assistant Secretary of State Michael Disombre stated, “Scam operations linked to crime in Myanmar, Cambodia, and Laos have reached an industrial scale. Activities that were once limited to small fraud rings have now evolved into a vast illegal economy with infrastructure, workforce, and supply chains.” According to reliable sources, millions of people from dozens of countries have been trafficked to these centers and forced to work.
Deputy Assistant Secretary David Bedard noted that these networks are expanding into South Asia, Africa, and other regions. To evade detection, they have shifted from large complexes to hotels and residential buildings.
Bedard explained that the structure of these organizations is multi-layered, involving criminal masterminds, managers, and scam employees. Additionally, corrupt officials, lawyers, accountants, bankers, and cryptocurrency converters assist in their operations.
He highlighted the emergence of new forms of fraud worldwide, citing examples like Indian call center scams, Jamaican lottery fraud, and cartel-related timeshare scams. The U.S. is also concerned about emerging scam centers in Sri Lanka.
Committee Chairman Jim Risch remarked that entire cities are now dedicated to defrauding U.S. citizens. He noted that these networks also promote the trafficking of illegal drugs and weapons.
Disombre mentioned that President Trump has raised the issue of international criminal organizations with Chinese President Xi Jinping. The U.S. has urged Beijing to demonstrate that it is not harboring these crimes and to hold Chinese crime lords accountable on the international stage.
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