Cambodia’s Online Scam Epidemic: Authorities Blame Foreigners, Experts Say Otherwise
Despite Claims of Crackdown, Online Scams Persist in Cambodia
Despite repeated claims by authorities to be cracking down on online scams, experts and victims alike say that the problem persists, with many Cambodians falling prey to fraudulent schemes.
Licensed Companies Not Immune to Fraud
According to officials from the Ministry of Commerce, licensed companies are thoroughly vetted before being issued licenses, and their operations are closely monitored. However, recent fraud scandals have involved licensed companies, leading experts to question the effectiveness of these measures.
“The problems are only for unlicensed [companies], which is a serious problem. Licensed [companies] are monitored by regulators,” said Chou Vannak, director general of the Real Estate Business and Pawnshop Regulator.
Experts Disagree with Authorities’ Narrative
However, Am Sam Ath, operations director at the human rights NGO Licadho, disagrees. “Even if the license is issued by the ministry, the relevant ministries and institutions must monitor the performance of each company. If [these companies] are not monitored and implemented, the company just takes its license. That’s [a way] to cheat, to deceive the people.”
Online Scams Have Broader Economic Impact
Experts point out that online scams not only target locals but also have a broader impact on the economy by discouraging foreign investment.
“Cambodia is losing credibility as an investment destination,” said Hong Vannak, an economic researcher at the Royal Academy of Cambodia. “Authorities must review the activities and financial records of licensed businesses to prevent frauds.”
Online Lending Scams Prey on Vulnerable Cambodians
In addition to fraudulent investments, Cambodians are also falling victim to online lending scams, where companies promise quick loans with exorbitant interest rates.
“If you look back at other major criminal interests of the Cambodian ruling elite, ‘crackdowns’ have principally served a consolidating and monopolizing function,” said Jacob Daniel Sims, a visiting expert on transnational crime at the US Institute of Peace. “What we are seeing in [Sihanoukville] at the moment falls clearly into this response pattern.”
Stopping Criminal Activity is Key
Despite efforts to educate the public about online scams, experts say that stopping criminal activity is more important than educating people.
“If we allow criminals to operate, they can always find vulnerable people to exploit,” said Mina Chiang, director of the Humanity Research Consultancy.
The ‘Foreigner’ Narrative is Flawed
The authorities have emphasized that scammers are targeting developing countries like Cambodia, where people may be less economically and technologically advanced. However, experts argue that this is a flawed narrative, pointing out that the challenge is political, not technological.
“It is well in the public domain precisely who owns the vast majority of these compounds and what is going on inside,” said Sims. “The ‘foreigner’ narrative here is an obfuscation.”
A Comprehensive Approach is Needed
As the online scam epidemic continues to plague Cambodia, experts urge authorities to take a more comprehensive approach to addressing the issue.
“Stopping criminal activity requires more than just token crackdowns or public warnings,” said Ath. “It requires a genuine commitment to tackling the root causes of corruption and criminality in Cambodia.”