Scam Offensives in Southeast Asia: Comparing Beijing’s and Washington’s Strategies and Assessing Opportunities for Coordination

Equipment confiscated in a raid by Cambodian police is laid out on a table at a scam center in Phnom Penh, Cambodia, Wednesday, March 11, 2026 | AP Photo/Heng Sinith

In an article for the Asia Society Policy Institute, a NYSEAN Partner, Bryanna Entwistle unpacks Southeast Asia’s scam economy, compares what the United States and China have done to combat it, and proposes a framework for tactical bilateral coordination addressing this issue.

Disrupting Asia’s cyber scam industry, which is valued at between $88.3 billion and $114.1 billion annually, presents a rare point of mutual interest for the United States and China. Both Chinese and American citizens are both primary targets of complex online fraud schemes run predominantly out of Myanmar, Cambodia, and Laos. 

To identify where opportunities for cooperation on addressing the issue exist for the United States and China, this paper examines the nature of Beijing's crackdowns on cyber scam operations in Southeast Asia, when Beijing chooses to act, and how. It identifies three core factors driving Chinese action: domestic pressure, reputational damage, and national security concerns. Where these factors converge, as in Myanmar, Beijing has acted swiftly and forcefully. Where reputational pressure collides with countervailing strategic interests, as in Cambodia, Beijing's pressure has been delayed but has grown over time. And where none of the three factors materially apply, as in Laos, Beijing has yet to move against major actors. When Beijing does act, it leverages bilateral, trilateral, and multilateral frameworks to conduct joint operations and intelligence gathering with its Southeast Asian partners. Framed under China’s Global Security Initiative (GSI), these mechanisms have broadened the country’s security relationships across the region—although partner states have not always welcomed Beijing's inroads.

As Beijing conducted raids against scam centers in Myanmar, the industry began redirecting its targeting toward the West: American losses to China-linked criminal groups grew to $10 billion per year by 2024. Washington has responded with a cross-departmental campaign of sanctions, indictments, asset seizures, and takedowns of scam-enabling online infrastructure. Still, the U.S. response is hampered by limited operational capacity on the ground in Southeast Asia and the "whack-a-mole" nature of the industry.