Sky News Undercover Exposes Cambodia's Notorious Scam Factories
In a groundbreaking undercover investigation, Sky News has penetrated the heart of Cambodia's illicit scam industry, uncovering abandoned compounds that once operated as high-security fraud factories. More than a year ago, the Brother Compound in Phnom Penh was an impenetrable fortress, surrounded by barbed wire, high walls, and vigilant security guards. Today, it stands eerily empty, a testament to a massive police crackdown that has swept across the country.
Evidence Left Behind in the Aftermath
Walking through the deserted corridors, our team discovered a chilling paper trail of evidence left behind by fleeing Chinese bosses and their workers. On a whiteboard in a dark ground-floor hallway, instructions in Mandarin detailed a sophisticated cryptocurrency investment scam. The notes outlined steps for emotional grooming of victims, setting the stage for fake stock recommendations and coordinated buy-ins. Another bullet point instructed on how to force targets to set up digital wallets and exit at a loss, revealing a global targeting operation.
Upstairs, the engine room of this enterprise featured rows of desks, discarded computers, and numbered wall pockets for mobile phones—personal devices were strictly forbidden during work hours. A bonus list on the wall promised rewards like a new iPhone for raising 300,000 USD-T (a cryptocurrency pegged to the US dollar) or a gold necklace for 500,000 USD-T, but these incentives clearly benefited only the criminal bosses, not the trafficked workers.
Life Inside the Scam Compounds
Every corner of the compound was monitored by CCTV cameras, imposing constant surveillance on hundreds of workers. Posters listing financial penalties covered the walls, a common tactic to dock salaries for infractions such as using personal phones or developing real emotional connections with clients. In most scam centres, workers were trapped—passports confiscated, threats of physical violence looming, and mattresses piled high in sleeping quarters where they had to eat, sleep, and breathe scamming.
Downstairs, suitcases full of clothes and photocopies of personal information were abandoned, hinting at a hasty evacuation. While some high-profile figures, like alleged kingpin Chen Zhi, have been extradited, thousands of freed workers now queue outside embassies, struggling to prove they are victims of trafficking, not perpetrators. Many lack passports or funds, and horror stories of violence, including electric Tasers used by bosses, are common.
Government Crackdown and Ongoing Challenges
The Cambodian government claims significant efforts to combat scamming, with 118 locations raided in late 2025, nearly 5,000 suspects detained, and over 4,000 illegal foreigners deported. However, the industry is estimated to generate over $12 billion annually—about one-third of Cambodia's GDP—and has deep ties to the political and business elite. In 2024, the US Treasury sanctioned Cambodian senator Ly Yong Phat for facilitating forced labour in cyber scams.
Despite surface-level raids, our undercover team found scammers brazenly setting up new offices in Sihanoukville, a hub for cyber fraud. Posing as potential workers on Telegram, we were quickly recruited to a building behind a casino, where new equipment was being moved in. In a room on the 31st floor, recruiters had us impersonate the legitimate US company KForce in a scripted scam, promising $1,000 monthly salaries and freedom of movement. Shockingly, a staff member claimed police would tip them off before raids, highlighting persistent corruption.
International Pressure and Future Prospects
This crackdown comes amid intense pressure from China and the US, both desperate to curb scams that target their citizens and involve Chinese nationals. Beijing seeks prosecutions, while Washington faces billions in annual losses. Cambodia's Minister of Information, Neth Peaktra, insists the government is clamping down and rejects claims of tolerating abuse, but the cyclical nature of these operations—often reopening after closures—poses a significant challenge.
As scam centres adapt and rebuild quickly, international cooperation will be crucial to dismantling this lucrative industry. The world must act smarter and faster to keep pace with these shape-shifting criminals and protect vulnerable workers and victims worldwide.
