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asiabulletin.com: http://www.asiabulletin.com/news/279064251/us-lawmakers-expose-billion-dollar-scam-linked-to-china

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GDELT news · original
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Wednesday, May 20, 2026

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In a press release, Committee Chairman John Moolenaar and Ranking Member Ro Khanna described the scam as a sprawling criminal ecosystem centred in countries such as Cambodia and Burma.

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The US House Select Committee on the Chinese Communist Party has released a new investigation alleging that China-linked scam centres operating across Southeast Asia are defrauding Americans of at least USD 10 billion annually while fuelling human trafficking, cybercrime, and illicit financial activity. In a press release, Committee Chairman John Moolenaar and Ranking Member Ro Khanna described the scam as a sprawling criminal ecosystem centred in countries such as Cambodia and Burma. According to the investigation, these networks combine online fraud operations with forced labour, money laundering, and underground financial systems. "These scam centres with deep links to China are a broad network of fraud, human trafficking, cybercrime, and illicit finance that are ripping off Americans and threatening our national security," Moolenaar said while releasing the findings. He further alleged that Chinese authorities can crack down on the criminal operations, but have failed to do so. Khanna said the investigation seeks justice for both American fraud victims and trafficked individuals forced to work inside scam compounds. He stated that stronger bilateral cooperation with Beijing, along with support for civil society organisations, would be necessary to dismantle the networks and secure compensation for victims. The committee's report stops short of accusing the Chinese state of directly running the operations. Instead, it argues that gaps in Chinese governance and weak enforcement have enabled the expansion of criminal syndicates with links to China. The report states that the networks depend heavily on Chinese underground banking channels, cryptocurrency brokers, and shell companies to move and launder money internationally. The investigation also highlights widespread human trafficking within the scam industry. Thousands of people, according to the committee, have reportedly been lured to Southeast Asia with false job offers before being forced to conduct online scams under threats of violence in heavily guarded compounds. Lawmakers warned that the rise of these networks threatens regional stability in Southeast Asia and undermines US allies in the region. The committee said the criminal enterprises also risk expanding Beijing's influence in an area increasingly central to strategic competition between the United States and China. (ANI)

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