Cambodia’s crackdown on cyber scam compounds has disrupted operations in Phnom Penh and elsewhere, but the multibillion-dollar industry is already showing signs of revival, according to an in-depth Bloomberg report.

Recent raids have emptied some buildings and forced workers into the streets, embassy queues, and temporary holding sites, including Phnom Penh’s old airport cargo area, Bloomberg said. The Cambodian government says it raided 190 locations between early January and early February, including 44 casinos, detaining more than 2,500 people and seizing large numbers of computers and phones.

But interviews conducted by Bloomberg with former workers, street vendors, activists and officials suggest the industry remains resilient because of its profitability and ability to relocate quickly. Vendors near suspected scam compounds said business fell after raids but had already begun recovering, while researchers and activists told the news agency that some workers were merely shifted to hotels or smaller rural sites while awaiting a return to operations.

The crackdown comes as Cambodia faces pressure from China, the U.S. and other governments angered by the scale of fraud targeting their citizens. Beijing has warned scam centers are damaging bilateral ties, while the U.S. tied a crackdown to lower tariff treatment for Cambodia and gave Phnom Penh a 90-day window to show progress, according to the report. 

Scam operations are difficult to eradicate because they are cheap to run, highly adaptive, and increasingly aided by cryptocurrency and artificial intelligence. Interpol officials said traffickers and scammers can rapidly move funds through multiple wallets, chains, mixers and exchanges, complicating enforcement efforts, the news outlet said. 

Read more at Bloomberg