US Alarmed by Surge in ‘Foreigner Butchering’ Scams from China
The US is growing more apprehensive about the rise of “foreigner butchering” scams purportedly orchestrated from China, introducing yet another possible complication to President Donald Trump’s upcoming meeting with Xi Jinping. The US-China Economic and Security Review Commission, which monitors and advises Congress on national security issues in US-China relations, reported that recent crackdowns on scam centers in countries such as Cambodia have led to Chinese criminals returning to their homeland to initiate smaller-scale operations focused exclusively on foreigners. “We’ve seen the numbers grow,” stated Vice Chair Michael Kuiken during an interview. When asked whether the matter should be included in a Trump-Xi meeting, Kuiken responded: “Any time American citizens are being victimized by criminal institutions, my answer is yes.” The term draws inspiration from a prevalent practice among scam centers in Southeast Asia referred to as “pig butchering” — a method of fattening an animal before its slaughter, where individuals are gradually persuaded to part with their money, frequently under the guise of romance or enticing investment opportunities. In “foreigner butchering,” gangs intentionally avoid targeting Chinese individuals to evade the wrath of Beijing. “I find it incredibly troubling, and I think it’s a trend line.”
Kuiken said “It’s a trend line that may have more sort of exponential growth in it,” citing rapid advancements in AI. “There’s going to be a point at which these artificial intelligence capabilities actually don’t need the industrial-scale fraud factory in Cambodia or Thailand or Myanmar.” The commission this month released a report characterizing China’s purported involvement in scams as a national security risk, noting that “alumni” of Southeast Asian scam centers are establishing operations in China. It referenced US government estimates indicating that Americans lost a minimum of $10 billion to scams originating in Southeast Asia in 2024, emphasizing that this issue ought to be prioritized. “There is a role for Congress here,” stated Kuiken, who served as national security adviser to then-Senate majority leader Chuck Schumer during the Biden administration. “There’s a role for the executive branch here, and there’s a role for federal law enforcement to do more as well.” The report indicated that in recent scam crackdowns, some ringleaders faced severe penalties, while those lower in the hierarchy received relatively brief prison sentences. Upon their release, they have been conducting small-scale scam operations from apartments and office buildings in various cities throughout China, frequently focusing solely on foreign victims.
Chen Zhi, alleged to be a scam kingpin, was detained and subsequently extradited to China in January due to his suspected involvement in establishing a scam network in Cambodia. The China-born tycoon and the Prince group of companies he established firmly reject any allegations of criminal activity. China has previously cautioned Cambodia that scam centers pose a strain on their relationship. The commission stated that obtaining precise data on the number of “foreigner butchering” operations proved challenging, yet it was evident that cases were on the rise. “While there have been at least 40 legal cases involving foreigner butchering operations inside of China in recent years, these likely represent only a small fraction of the scale of the problem,” the report stated. “Foreigner butchering” also carries a potential patriotic dimension. The report referenced a Chinese lawyer involved with individuals accused of such scams, stating that many hold the belief that “defrauding foreigners out of money is not illegal.” It also highlighted media accounts regarding the arrest of four men who claimed they exclusively targeted Japanese victims because “Chinese don’t scam Chinese.”
Kuiken stated that China’s involvement in the crackdowns observed in Southeast Asia exhibited characteristics of grey zone tactics. “I believe the Chinese aggressively use the criminal, the triad to — I don’t know if they actually deploy them, but when they are already deployed and they see opportunity, they seek to leverage it, and they seek to leverage it to make sure that their police and security forces can sort of get the camel’s nose under the tent” in other countries. According to Kuiken, the arrest of Chen Zhi and the crackdowns in Cambodia may have a near-term impact on operations there, but more comprehensive and robust efforts are needed. He characterized scam centers in Cambodia as “ubiquitous.” Cambodia announced in late February that its efforts to combat scams had reduced such activities in the country by half since the beginning of the year, with the goal of bringing all operations under control by April. Last month, the government announced a draft law aimed at addressing online scams. Cambodia does “not have the capacity to get after these incredibly sophisticated scam centers,” Kuiken said. “Anytime you have something that’s conducting an activity at scale, it is very hard to get after it.”
