Ask Onix
Thai forces uncover sprawling fraud complex in Cambodia
Behind the ruins of Royal Hill casino, Thai soldiers found a six-story compound designed for large-scale online scams. The site, near the Thai border in O Smach, was abandoned after December's airstrikes left it in rubble.
Inside the abandoned scam factory
Each floor of the building housed a different facade: a Vietnamese bank, an Australian police station, even a replica of a Chinese precinct. Walls bore motivational slogans in Chinese, including "Money Coming From Everywhere." Scattered fake $100 bills littered the floors.
Documents recovered from the debris detailed a brutal regime. Workers who failed to secure "leads" faced caning-five strokes for a single missed day, ten for three days of failure. Conversations with colleagues or refusal to share personal photos triggered similar punishments.
"Some were electrocuted. Others were locked in the Black Room, where torture was routine,"
Wilson, a Ugandan worker who escaped in December
Wilson, who believed he was heading to a digital marketing job in Malaysia, described 16-hour shifts portraying fictional personas to defraud victims. Scripts dictated emotional manipulation, often targeting older Americans with promises of romance or investment opportunities.
How the compound operated
Workers, recruited from across Asia and Africa, were monitored relentlessly. Toilet breaks required permission, with forms tracking each visit's duration. Soundproof booths lined one floor, equipped with Portuguese-language notes for scammers targeting Brazilian victims. A fake police summons from São Paulo was used to extort money under threats of money-laundering charges.
AI tools altered voices and appearances to match scripted personas. Bombings during the Thai-Cambodian conflict forced workers to flee temporarily, but they were ordered back to resume operations.
Cambodia's scam industry: A lucrative shadow economy
O Smach's casinos thrived on gambling bans in neighboring Thailand and China. After Beijing pressured Cambodia to outlaw online gambling in 2019, syndicates pivoted to fraud. The pandemic's travel restrictions accelerated the shift, with compounds luring workers under false pretenses.
Royal Hill's owner, Lim Heng, avoided international scrutiny despite his ties to the ruling Hun clan. Like other tycoons, he received the Neak Oknha title-a status granted for donations of at least $500,000. His only public eccentricity: paying respects at the cremation site of Khmer Rouge leader Pol Pot.
Government crackdown: Too little, too late?
Cambodia's government long ignored global concerns, even defending tycoons like Ly Yong Phat, who was sanctioned by the U.S. in 2024 for human trafficking. But this year, under pressure from Washington and Beijing, authorities raided dozens of compounds and vowed to shutter the industry by April.
The arrest of Chinese businessman Chen Zhi-extradited to China in January-marked a rare high-profile takedown. Once an adviser to former Prime Minister Hun Sen, Chen's public humiliation (shown hooded and handcuffed) signaled a shift. Yet critics call the crackdown symbolic, noting most tycoons remain untouched.
"Raiding compounds is like playing whack-a-mole. Workers simply move to new locations,"
An unnamed aid worker in Phnom Penh
Over 10,000 foreign workers have been repatriated, but thousands more remain stranded. Wilson, the Ugandan survivor, now relies on a charity to secure his return home.
Unanswered questions
Despite the government's promises, skeptics doubt the scams will end. Many compounds have relocated, and powerful figures like Ly Yong Phat and Lim Heng face no charges. In a final irony, senators linked to the industry recently voted for a law to punish scammers-while their own casinos remain untouched.
The Thai military's occupation of Royal Hill, justified as a bid to expose the scams, also serves as a reminder of December's brief border war. Cambodia has protested the incursion, but Thailand insists the ceasefire allows its forces to remain.
