US Sanctions Burma Armed Group DKBA for Cyber Scams Targeting Americans
Published
Key Takeaways
- New sanctions: The U.S. Treasury has sanctioned the Democratic Karen Benevolent Army (DKBA), a Burmese armed group, for its involvement in cyber scam centers.
- Strike force: A multi-agency Scam Center Strike Force has been created to investigate, disrupt, and prosecute large-scale scam operations based in Southeast Asia.
- Human trafficking link: The targeted scam centers rely on human trafficking, coercing individuals through violence and debt bondage to defraud Americans.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced significant U.S. sanctions against the DKBA and its senior leaders. The action was taken in response to the armed group's support for fraudulent investment schemes operating from cyber scam centers in Burma that specifically target U.S. citizens.
New Scam Center Strike Force to Combat Organized Crime
The sanctions also extend to other entities for their roles in developing scam compounds in partnership with the DKBA and other armed groups:
- Trans Asia International Holding Group Thailand Company Limited (Trans Asia),
- Troth Star Company Limited (Troth Star)
- Thai national Chamu Sawang.
These criminal networks generate billions of dollars by defrauding Americans, with the proceeds funding organized crime and the ongoing civil conflict in Burma, according to the Treasury press release.
“These same networks traffic human beings and help fuel Burma’s brutal civil war,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “The Administration will keep using every tool we have to go after these cybercriminals—wherever they operate—and to protect American families from their exploitation.”
In conjunction with the sanctions, the U.S. Attorney for the District of Columbia, along with the Department of Justice (DoJ), FBI, and U.S. Secret Service, announced the formation of a Scam Center Strike Force.
This initiative will dedicate agents and attorneys to disrupting the most egregious scam operations in Southeast Asia, with a primary focus on Burma, Cambodia, and Laos.
The strike force will use all available government tools, including sanctions, asset seizures, and criminal prosecutions, to dismantle these networks at the highest levels. This collaborative effort recognizes the immense financial and personal impact these scams have on American victims.
Human Trafficking and Scams Fueling Violence
Criminal organizations often recruit workers under false pretenses and then use violence, threats, and debt bondage to force them to perpetrate online scams. Victims rescued from compounds in DKBA-controlled territory have reported brutal treatment, including electric shocks and beatings.
The revenue from these illicit operations not only enriches the DKBA and its partners in Chinese organized crime but also enables them to finance their violent activities. The sanctions aim to disrupt this cycle of exploitation and protect Americans from these sophisticated criminal enterprises.
Strike Force seized and forfeited $401,657,274.33 in cryptocurrency from these schemes, and announced filing forfeiture proceedings for $80 million in stolen funds, according to the DoJ.
A cyber scam operation was dismantled in February 2024, when 215 people were rescued in a major Thai and Cambodian Police raid. Cambodian senator and entrepreneur Ly Yong Phat was sanctioned over human trafficking, forced labor, and crypto scams in September 2024.
In October, the DoJ unsealed an indictment against Chen Zhi, the chairman of Prince Group. The charges include wire fraud and money laundering conspiracies related to his direction of a forced labor scam operating out of compounds in Cambodia.
Related
Get expert insights on threats, breaches, scams, and security trends — delivered every Saturday.
Most Popular
Get expert insights on threats, breaches, scams, and security trends — delivered every Saturday.
Most Popular