Executive Summary
- Research indicates Southeast Asia’s scam compounds have industrialized, trapping thousands in forced labor.
- Trafficking victims are often coerced into committing cybercrimes, blurring the legal distinction between victim and perpetrator.
- The “victim-offender overlap” complicates international rescue operations and criminal prosecutions.
- High-profile cases have drawn attention to the physical abuse and coercion used to maintain workforce discipline.
Southeast Asia’s network of fortified “scam compounds” has expanded into a massive industrial complex where human trafficking victims are coerced into committing cybercrimes, according to a detailed report by researchers Ivan Franceschini and Ling Li. The study highlights how these enclaves, located primarily in Cambodia, Laos, and Myanmar, have evolved from small-scale fraud operations into large, secured facilities equipped with surveillance systems and armed guards.
According to the report, thousands of workers—many trafficked from China and neighboring regions—are held within these compounds and forced to run online schemes targeting victims globally. These operations range from “pig butchering” investment scams and romance fraud to money laundering and impersonating law enforcement officials. The researchers assert that the industry relies on a complex criminal ecosystem involving recruiters, brokers, and enforcers who traffic individuals across borders.
The report details the emergence of a “grey zone” regarding the legal status of those inside the compounds. While some individuals, such as minors, are clear victims of trafficking, others are coerced into becoming perpetrators to survive. The researchers cited the case of a 15-year-old identified as “Bao,” who was trafficked to Cambodia and held for ransom. In contrast, other victims, such as a woman identified as “Tavares,” were forced to utilize their skills to refine scam scripts and manage fraud operations under the threat of violence.
Franceschini and Li also analyzed the high-profile case of Li Yayuanlun, known as the “blood slave,” who claimed in 2022 that captors drained his blood. While the researchers noted that medical experts and authorities later questioned specific details of his account, the case illustrated the extreme pressure survivors face. The report suggests that the skepticism surrounding such testimonies complicates rescue efforts, as survivors often struggle to prove they were victims of modern slavery rather than willing participants in criminal enterprises.
The investigation further references data from the Blue Dragon Children’s Foundation, a Vietnamese NGO, which found that a significant portion of identified traffickers had previously been victims themselves. This “victim-offender overlap” indicates that individuals are often forced to recruit new workers or police their peers as a condition of their own survival or release.
Global Investigative Implications
The proliferation of these scam compounds presents a significant challenge for international law enforcement and humanitarian organizations. The structural overlap between victims and offenders complicates legal classifications, making it difficult for authorities to distinguish between coerced individuals and willing participants. This dynamic hinders prosecution efforts and creates obstacles for NGOs attempting to provide reintegration support for survivors who may face criminal liability in their home countries. As these criminal networks continue to operate across jurisdictions, the focus for law enforcement is shifting toward dismantling the financial and recruitment infrastructures that sustain the industry.
