Cambodia passes its first anti–tech scam law, strengthening law enforcement regulations to combat online telecom fraud

Cambodia’s parliament unanimously passed the “Anti-Technology Crime Law” (the “anti-tech fraud law”) at the end of March, aiming to eliminate increasingly rampant problems such as online fraud and human trafficking within the country. The bill establishes specific offenses for activities such as organized fraud and money laundering, with a maximum penalty of life imprisonment.

New regulations expand law enforcement scope and increase fines

Cambodia’s National Assembly had all 112 lawmakers vote in favor on March 30 to pass a new law specifically targeting technology scams. According to reports, the bill adds five core offenses, covering everything from recruiting and training personnel, to maliciously collecting personal data, to carrying out fraud and money laundering. In the past, Cambodia lacked regulations to rein in online scams, which made it difficult for law enforcement units to define emerging technology-related crimes; the new law closes legal loopholes. For ordinary online scam offenders, the new law provides for imprisonment of two to five years and a maximum fine of $125k; for the person in charge or operator of a scam compound, the prison term is increased to five to ten years, and the fine cap is raised to $250k.

Pig Butchering Schemes fraud scams誘誘 victims to invest in virtual currency—categorized as the loss with the largest scale

Blockchain analytics firm Chainalysis found that scam groups commonly known as “Pig Butchering Schemes” defraud people through social apps, with a linkage to cryptocurrency investment. Victims are often first lured into building emotional relationships, and then persuaded to invest in virtual currency. Data from the U.S. Federal Trade Commission (FTC) shows that the total annual losses associated with this category have already exceeded $1 billion, and the Federal Bureau of Investigation (FBI) also lists cryptocurrency-related investment scams as the largest loss category. To respond to this trend, cryptocurrency service providers have begun building cooperation mechanisms with law enforcement agencies. In 2023, stablecoin issuer Tether cooperated with investigations by the U.S. Department of Justice and froze $225 million USDT linked to Southeast Asian scam groups, showing that digital asset tracking technology has become a key tool in modern criminal investigations.

Under international pressure, Cambodia finally pushes forward the new law

Cambodia’s push for the new bill is closely related to pressure from the international community. Reuters reported that at the end of March, the British government imposed sanctions on Legend Innovation, a company suspected of operating scam compounds, and the cryptocurrency trading platform Xinbi. The UK Foreign Office determined that the compound could accommodate 20,000 trafficked workers, involving the sale of stolen personal data. A minister of state at the UK Foreign Office, Doughty (Stephen Doughty), emphasized that these sanctions are intended to disrupt the funding chain of criminal organizations, including by freezing property assets located in London. Because the international community has long criticized the Cambodian government for inadequate regulation of fraud activities, this legislation is also seen as Cambodia’s attempt to repair its international reputation—responding with concrete actions to joint law-enforcement pressure from countries including the United States and the United Kingdom.

Beyond targeting economic fraud, the new bill substantially strengthens criminal penalties for derivative violent crimes. Cambodia’s Minister of Justice Keut Rith said that many victims from Asian countries are lured by false promises of high-paying jobs and forced to work in heavily guarded compounds. The bill stipulates that if a fraud case involves human trafficking, unlawful confinement, or violent coercion, the relevant prison term will be significantly increased to 10 to 20 years, and in severely serious cases, offenders may even face life imprisonment. The bill is currently being sent to the Senate for deliberation and will ultimately be signed into effect by King Norodom Sihamoni. The government previously promised to take large-scale action by the end of April to crack down on illegal scam centers within the country.

This article, “Cambodia passes its first anti-tech fraud law, strengthening law-enforcement rules to combat online telecom fraud,” first appeared on Lian News ABMedia.