U.S. Official Accuses China of Tolerating Scam Compounds Targeting Americans
Summary
At a congressional hearing, a U.S. commission official alleged Chinese authorities tolerate some scam compounds targeting foreigners and linked scam proceeds to state-connected projects. Witnesses urged stronger U.S. reporting, enforcement and international cooperation.
Key points
- U.S.-China Economic and Security Review Commission commissioner Reva Price alleged that Chinese authorities have tolerated some scam operators targeting foreigners while cracking down on operations affecting Chinese citizens.
- Price said investigators found links between scam proceeds, Belt and Road-related projects and Yatai New City in Myanmar; she also cited crime boss Wan Kuok-Koi as an example of alleged tolerance for operators aligned with Chinese Communist Party messaging.
- Price cited estimates that scam operations in Myanmar, Cambodia and Laos generated about $44 billion, and said losses from online scams fell about 30% in China in 2024 while U.S. losses rose roughly 40%.
- Price alleged China has used concern about scam compounds to expand its law-enforcement role in Southeast Asia. FBI official Gregory Heeb said U.S. efforts depend on cooperation from local governments.
- Witnesses proposed a centralized scam-reporting portal, stronger information sharing, measures targeting scam calls and online platforms, and cryptocurrency rules to help recover funds.
- Justice Department official Karen Seifert said the Scam Center Strike Force has more than 150 personnel and argued for faster authority to seize websites or platforms used for fraud.
Article Details
- Event Type
- U.S. congressional testimony alleging Chinese government support for transnational cyber scam compounds and proposing responses
- Impact
- Reva Price said online scams cost U.S. citizens more than $16 billion annually and alleged that Chinese-linked scam operations have shifted toward targeting Americans. She cited estimates that operations in Myanmar, Cambodia, and Laos generated about $44 billion, roughly 40% of their combined GDP. The testimony also cited a reported 2024 decline of about 30% in scam losses in China and an increase of roughly 40% in the United States. These figures and allegations are attributed to the cited officials and estimates.
People
Gregory HeebFBI deputy assistant director who testified about obstacles to U.S. law enforcement action against scam centers and the need for cooperation from host governments.Karen SeifertJustice Department official who leads the Scam Center Strike Force and described proposed authorities for faster seizure of websites involved in scamming.Maggie HassanSenator who advocated for a centralized scam-reporting portal and increased pressure on China regarding scam compounds targeting Americans and others.Reva PriceU.S.-China Economic and Security Review Commission commissioner who testified about the commission’s investigation into scam compounds and alleged links between scam proceeds and Chinese state-linked projects.
Threat Actors
Broken-ToothExplicitly identified in the article as an alias of Wan Kuok-Koi. Price described his post-prison criminal operations in Southeast Asia and alleged that China had not acted against his scam centers.Chen ZhiDescribed by the article as a reputed cyber scam kingpin whom Chinese law enforcement extradited earlier that year; the article does not present his alleged role as a confirmed finding.Wan Kuok-KoiPrice described him as a crime boss who rebuilt criminal operations in Southeast Asia after prison and said China had not acted against his scam centers. The article reports Price’s allegation that he received favorable treatment after promoting messaging aligned with Chinese Communist Party priorities.
Vendors
Countries
CambodiaBeijing has used the scam crisis to expand law enforcement influence in Cambodia, Laos, Myanmar and Thailand.ChinaThe testimony highlighted ties to developments like Yatai New City and warned that China’s selective crackdowns have driven these operations to target Americans, costing U.S.IndiaThe FBI has had success in India and Thailand due to the local willingness to help take down the scam centers.LaosBeijing has used the scam crisis to expand law enforcement influence in Cambodia, Laos, Myanmar and Thailand.MyanmarBeijing has used the scam crisis to expand law enforcement influence in Cambodia, Laos, Myanmar and Thailand.Palau“China is trying to use the same playbook as scam centers have spread globally — including in Palau and most recently parts of Africa,” Price said.ThailandBeijing has used the scam crisis to expand law enforcement influence in Cambodia, Laos, Myanmar and Thailand.United StatesA senior U.S. official accused the Chinese government of implicitly backing Chinese criminal syndicates that run large scam compounds across Southeast Asia and of commingling scam proceeds with state-linked projects.Vietnamwith Laos and Cambodia in 2023 and 2024 as well as a regional pact signed with Myanmar, Thailand and Vietnam to “strengthen intelligence sharing and joint operations to crack down on scam centers.”
Industries
Cryptocurrencyregulations on AI that would stop scam calls before they even make it to phones, and requiring cryptocurrency companies to slow down transactions so funds could be clawed back.TechnologyIn addition to a centralized reporting portal, witnesses urged the government to hold technology companies accountable, citing a recent report from Reuters that said Meta projected about 10% of its 2024 revenue, roughly