Transnational online scam operations on the rise, U.S. State Department says

The U.S. State Department reported that industrial-scale online scam operations are increasing and pose a direct threat to U.S. national security. According to the 2026 Trafficking in Persons Report released Oct. 8, transnational crime organizations, primarily run by Chinese nationals and based in Southeast Asia, have expanded into Africa, the Middle East, Europe, and Latin America.

These organizations use fraudulent romance, gambling, and cryptocurrency schemes to defraud people in more than 125 countries. The report states that Americans are the primary targets, losing at least $18.2 billion in 2025 to compounds located in Southeast Asia.

The report found that these groups recruit individuals from at least 80 countries through deceptive practices. Once recruited, victims are often forced into labor within guarded compounds and subjected to violence, sexual exploitation, and intimidation to coerce them into committing crimes. The annual assessment covers the period from April 1, 2025, through March 31, 2026.