The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on several individuals and entities connected to online scam operations in Southeast Asia. According to a statement from Secretary of State Marco Rubio, Americans lost at least $10 billion to these scams in 2024, based on U.S. government estimates.
The newly announced sanctions target nine entities linked to scam centers in Shwe Kokko, Burma. These operations are said to function under the protection of the Karen National Army (KNA), which is already subject to sanctions. The KNA is identified as a transnational criminal organization that supports online scams aimed at Americans and exploits workers through forced labor.
In addition, OFAC has sanctioned four individuals and six organizations involved with forced labor compounds in Cambodia. Workers at these sites are reportedly compelled to conduct virtual currency investment scams targeting people in the United States, Europe, China, and other regions.
“These sanctions protect Americans from the pervasive threat of online scam operations by disrupting the ability of criminal networks to perpetuate industrial-scale fraud, forced labor, physical and sexual abuse, and theft of Americans’ hard-earned savings,” Secretary Rubio stated.
The Treasury’s actions were carried out under Executive Order 13581 (as amended), as well as Executive Orders 13863, 14014, 13818, and 13694 (as amended). Additional details about these measures can be found in the Treasury Department's Press Release.