Cambodia Busts Massive Cyber-Fraud Network Using Fake Police Identities
Phnom Penh, Cambodia — February 13, 2026
In one of the most significant strikes against transnational organized crime this year, Cambodian authorities, in coordination with international task forces, have dismantled a sprawling cyber-fraud network operating out of the Kampot and Oddar Meanchey provinces.
The crackdown has exposed the “shocking” inner workings of “digital arrest” scams, where criminal syndicates utilized meticulously crafted fake police stations to defraud victims across the globe.
As thousands of trafficked workers begin to flood out of these “scam compounds,” the world is getting a rare, unfiltered look at the industrial scale of modern digital exploitation.
Inside the “Police Studio” Compounds
The raid on the Kampot casino complex, known locally as “My Casino,” revealed a sophisticated operation that goes far beyond simple phishing.
Investigative teams discovered specialized “studio booths” lined with acoustic foam for professional-grade soundproofing.
Most disturbingly, these booths were dressed to look exactly like high-ranking police offices from various nations, including India, Brazil, and China.
Officers recovered fake police uniforms, official-looking flags, and even portraits of national figures like Mahatma Gandhi, used to create a backdrop of authenticity during video calls.
These “sets” were used to conduct what are known as “digital arrests,” where victims are told via video chat that they are under investigation for money laundering or drug trafficking.
The “officers”—actually trafficked workers following strict scripts—then coerce the victims into transferring their life savings into “government safety accounts” to avoid immediate imprisonment.
The Scale of the “Humanitarian Crisis”
The Cambodian Secretariat of the Commission for Combating Online Scams, led by Deputy Chief Chhay Sinarith, confirmed that approximately 190 locations have been sealed off in recent weeks.
The crackdown has resulted in the arrest of 173 senior crime figures and the deportation of over 11,000 workers. However, the human cost is staggering.
Amnesty International has characterized the aftermath as a “humanitarian crisis.” Thousands of these workers were themselves victims of human trafficking, lured to Cambodia by “all-expenses-paid” job offers in logistics or customer service, only to have their passports seized and be forced to work 16-hour shifts under threat of violence.
In Oddar Meanchey, reporters witnessed hundreds of workers fleeing the compounds on foot as the criminal bosses—including recently detained tycoon Ly Kuong—lost their grip on the facilities.
International Pressure and Geopolitical Shifts
The timing of this crackdown is not accidental. For years, Cambodia faced global criticism for its perceived leniency toward these syndicates.
However, the “Prince Group” scandal and subsequent U.S. and South Korean sanctions in late 2025 created a tipping point. Prime Minister Hun Manet has since declared the eradication of cyber-fraud a “deliberate political priority,” aiming to clear out all major hubs by late March 2026.
The international community, particularly the United Nations Office on Drugs and Crime (UNODC), has been working closely with Cambodian “cybercops” to build the digital forensic capacity needed to seize cryptocurrencies before they can be laundered.
This cooperation is a key pillar of the new “Global Treaty on Cybercrime,” which seeks to streamline the sharing of electronic evidence across borders—a vital tool when the “police officer” on the screen is in Kampot but the victim is in London or Delhi.
The Economics of Shadow Empires
The financial stakes of these operations are astronomical. U.S. prosecutors recently filed a $15 billion forfeiture claim linked to laundering networks associated with these compounds—the largest in the Department of Justice’s history.
For the leadership governance, the challenge lies in how these “shadow empires” have integrated themselves into the legitimate economy.
The liquidation of major entities like Prince Bank, following the extradition of its chairman to China, shows how deeply the “scam economy” has penetrated the regional banking sector.
As the 2026 “Digital Wall” begins to rise, with nations like Russia and India tightening controls over messaging apps like WhatsApp to prevent these scams, the battle moves from the physical compound to the encrypted network.
Conclusion: The Long Road to Recovery
While the bust in Phnom Penh and Kampot is a victory for the rule of law, the road to recovery for the victims—both the defrauded and the trafficked—is long.
The Cambodian government has revoked over 120 business licenses and suspended 1,000 gambling-related websites, but the infrastructure of these compounds remains.
For Castle Journal and the world leadership governance, this event serves as a stark warning: in the digital age, the most dangerous weapon isn’t a gun, but a well-lit studio and a persuasive script.
We will continue to follow the secretive reports of the “OCG” (Organised Crime Group) members still operating in the shadows of Southeast Asia.
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