Tens of thousands of Indian nationals have become victims of elaborate cryptocurrency fraud and cybercrime rings in Southeast Asia, lured by the promise of high-paying jobs only to be enslaved in online scam operations. These fraudulent networks have ensnared young Indians, forcing them to participate in cybercrime under brutal and inhumane conditions, according to local reports.
The victims are drawn in by fake job offers for roles in IT and data entry, promising attractive salaries. Upon arriving in countries such as Cambodia, Laos, and Myanmar, their passports are confiscated, and they are forced to work in guarded compounds. The work often involves participating in cryptocurrency fraud, phishing scams, and so-called “pig butchering” scams, which typically target individuals back in India.
“Cryptocurrency is not just the future, but it’s the present of our 21st-century economy,” Senator Niraj Antani remarked as cryptocurrency gained more attention. However, in these cyber-slavery operations, cryptocurrency has become the tool for exploitation and fraud rather than innovation.
Rising Number of Victims
A March 2024 report estimated that Indian nationals have lost approximately INR 500 crores ($60 million) to these Southeast Asian cybercrime networks between October 2023 and March 2024. In some instances, the victims are coerced into impersonating law enforcement officials in elaborate scams designed to extort money from fellow Indians through fraudulent drug-in-parcel schemes.
Approximately 45% of cybercrimes targeting Indian nationals are believed to originate from Southeast Asia, where young people are being held captive under deplorable conditions, compelled to carry out these fraudulent operations.
The severity of the situation is highlighted by data showing that nearly 30,000 Indians who traveled to countries like Cambodia, Thailand, Myanmar, and Vietnam between January 2022 and May 2024 have yet to return. This has prompted urgent action from the Indian government, which has started working with international organizations, NGOs, and Southeast Asian governments to repatriate its citizens and dismantle the cyber slavery networks.
Government Response and Rescue Efforts
The Indian government has stepped up efforts to rescue victims, with multiple initiatives underway. On August 14, Indian youths were rescued from scam centers in the Bokeo province of Laos. In response, the Indian Embassy in Laos issued a cautionary message, warning that employment on a ‘Visa on Arrival’ basis is illegal, and urged residents to verify the credentials of recruiting agents before accepting job offers abroad.
“Since they have failed to act, the legislature will,” Antani said, signaling his frustration with the lack of progress in countering these scam networks. Telecom operators in India have also been ordered to block international spoofed calls and monitor suspicious roaming activity linked to the scams. Additionally, millions of compromised SIM cards associated with these cybercriminal activities have been disconnected as part of the crackdown.
An inter-ministerial panel has been formed by the Indian government, comprising representatives from various departments, to take decisive steps against the cyber-slavery networks. This includes working closely with Southeast Asian authorities to ensure the safe return of the trapped Indian nationals.
International Attention on Human Trafficking Links
These cryptocurrency-related cyber scam networks often extend beyond financial fraud, with links to global human trafficking and exploitation rings. In 2023, a Bloomberg investigation led by journalist Zeke Faux uncovered a massive human trafficking operation in Cambodia that was connected to Chinese criminal organizations. The victims were held in compounds like “Chinatown” in Sihanoukville, where they were subjected to brutal physical abuse and forced drug use to ensure compliance with the scam operations.
The issue has attracted the attention of international authorities, including the U.S. Department of the Treasury, which recently sanctioned a Cambodian senator for his involvement in cyber-scam centers that exploit trafficked workers. The sanctions not only targeted the senator but also his conglomerate, which was found to be exploiting individuals in cryptocurrency-related fraud operations.
As governments around the world grapple with the increasing scale of cryptocurrency-related fraud and cybercrime, Southeast Asia remains a critical region for addressing the broader issues of human trafficking and financial exploitation.