U.S. Attorney Jeanine Pirro unveiled a new Scam Center Strike Force to combat Chinese organized crime and cryptocurrency scams originating from Southeast Asia. The initiative targets operations in Burma, Cambodia, and Laos, with sanctions imposed on groups supporting these frauds. Officials estimate Americans lost at least $10 billion to these scams in 2024.
On Wednesday, U.S. Attorney for the District of Columbia Jeanine Pirro announced the formation of the Scam Center Strike Force during a news conference in Washington. The force includes the U.S. Attorney's office, the Department of Justice's Criminal Division, the FBI, and the United States Secret Service. Its mission is to "investigate, disrupt and prosecute the most egregious Southeast Asian scam centers and their leaders," focusing on Burma, Cambodia, and Laos.
Pirro emphasized the goal of protecting Americans: "We strive to expose these fraudulent contacts and pitfalls so that Americans end up secure in their investments." The strike force will collaborate with the Treasury Department's Office of Foreign Assets Control (OFAC), the State Department, and other agencies, employing tools such as sanctions, asset seizures, and criminal prosecutions. It also aims to secure U.S. infrastructure against scammers, provide public education, and assist victims with restitution.
Southeast Asian criminals are increasingly targeting Americans through large-scale cyber operations, Pirro noted, citing cases like an elderly woman who lost $1 million in life savings and another that resulted in a man's suicide. Collaborations include Meta, with Microsoft and AARP also offering support.
A U.S. government estimate indicates Americans lost at least $10 billion to these scam operations in 2024, a 66% increase from the previous year. Scammers recruit workers under false pretenses, then use debt bondage, physical violence, and threats of forced prostitution to coerce them into targeting victims via messaging apps or texts. Tactics involve building trust through promises of romantic relationships or friendships, leading victims to fake investment platforms where funds are stolen.
The FBI stated: "Chinese transnational criminal organizations (TCOs) are using cryptocurrency investment scams and a variety of confidence scams to steal the life savings of everyday Americans."
Simultaneously, the Treasury Department announced sanctions against the Democratic Karen Benevolent Army (DKBA) and four of its senior leaders for supporting cyber scam centers in Burma that target Americans with fake investment schemes. Additional designations include Trans Asia International Holding Group Thailand Company Limited, Troth Star Company Limited, and Thai national Chamu Sawang, all linked to Chinese organized crime and DKBA.
Under Secretary John K. Hurley remarked: "Criminal networks operating out of Burma are stealing billions of dollars from hardworking Americans through online scams. These same networks traffic human beings and help fuel Burma’s brutal civil war. The Administration will keep using every tool we have to go after these cybercriminals—wherever they operate—and to protect American families from their exploitation." The revenue from these scams, generated by trafficked workers, funds organized crime and DKBA activities.