The United States and the United Kingdom have formalized a joint initiative to dismantle scam centers responsible for billions of dollars in losses through investment and romance fraud schemes. A memorandum of understanding was signed on Thursday by officials from the U.S. Department of Justice and senior representatives from the U.K.'s National Crime Agency and Crown Prosecution Service.
The agreement outlines a commitment to conduct parallel investigations and share intelligence regarding the organized crime syndicates operating these scam centers, many of which are based in Southeast Asia. A key objective is to disrupt Chinese gangs that are believed to manage these scam compounds.
Under the terms of the memorandum, both nations will coordinate on jurisdictional decisions for cases of mutual interest and prioritize efforts to achieve shared outcomes against this threat. The Justice Department confirmed that both U.S. and U.K. counterparts had already identified significant overlapping cases and pledged to collaborate on an in-person disruption event with private industry partners, hosted by the National Crime Agency in London in early October.
This collaborative effort builds upon the U.S. Scam Center Strike Force, which was established in November to coordinate domestic law enforcement responses to cyber scams. The FBI has reported that cyber-enabled fraud schemes account for nearly 85% of all reported losses to the agency. Last year, Americans lost over $12 billion to cyber scams, a figure that is likely underestimated due to underreporting by victims.
The scams are frequently perpetrated by victims of human trafficking, who are housed in compounds located across countries such as Myanmar, Cambodia, and Laos. These compounds are reportedly run by Chinese gangs, often with the complicity of local officials.
The Scam Center Strike Force, led by Assistant U.S. Attorney Karen Seifert, comprises over 150 personnel, including prosecutors and agents from the FBI, IRS, and U.S. Postal Inspection Service. Its most notable success to date has been the disruption of Prince Group, a Chinese front company allegedly used to launder billions of dollars derived from these fraudulent activities.
Both U.S. and U.K. agencies have imposed sanctions on Prince Group. Additionally, the Justice Department has seized approximately $15 billion worth of Bitcoin linked to Chen Zhi, the company's CEO, as part of its ongoing efforts to combat these sophisticated criminal operations.
