Cambodia prepares “Anti-Telecom Fraud Law” with tougher penalties to dismantle online scam compounds

The draft legislation targets telecom and online scams with prison terms that can reach 30 years (or life in the most serious cases), heavy fines, and broader liability for enablers—part of Phnom Penh’s push to shut scam centers and respond to growing international pressure.

Cambodia is finalising a new legal framework commonly referred to in local coverage as the Anti-Telecom Fraud Law, aimed at escalating penalties for telecom- and internet-based fraud and tightening accountability around the scam ecosystems that have proliferated across parts of the country in recent years. The move comes as authorities intensify a nationwide crackdown on so-called scam compounds—large operations linked to online fraud schemes such as fake investments and romance scams—often involving foreign workers and allegations of trafficking and coercion.

According to reporting summarising the draft, the proposed law would impose significantly harsher prison terms, with penalties ranging from several years up to 30 years, and in the most severe scenarios (including cases connected to deaths) potentially life imprisonment. It also includes large fines (figures cited in public reporting reach up to US$500,000 in aggravated cases).

A key policy signal is that Cambodia is not only targeting direct perpetrators. Officials and reporting indicate the draft framework also aims to punish those who facilitate operations—such as people or entities that provide premises, logistical support, or protection—while some coverage notes that local leaders could face responsibility if such networks operate within their jurisdictions, a mechanism designed to reduce “safe zones” and improve enforcement consistency on the ground.

The legislative push is being presented as part of a broader campaign to close scam hubs quickly and prevent them from resurfacing after raids. Cambodia has said it has already shut down around 200 scam centers during the current enforcement drive, while international observers continue to stress that lasting impact depends on dismantling the underlying financial, recruitment, and protection networks that allow compounds to re-form.

If the bill moves through Parliament as planned, Cambodia would have its first dedicated, comprehensive statute focused specifically on the scam-compound model—raising the legal risk for operators and enablers alike, and making accountability harder to evade in a sector that has become a reputational and diplomatic flashpoint.