Online scam networks allegedly operated by Chinese nationals have shifted their base from Cambodia to Madagascar after law enforcement crackdowns across Southeast Asia forced a geographic retreat, with investigators uncovering suspected links to human trafficking along the way. Authorities in Madagascar, working in coordination with the US Department of Justice (DOJ), dismantled 13 scam compounds during operations carried out in August and September 2026.

Scale of the Madagascar Operations

The targeted centres were allegedly involved in romance scams, cryptocurrency fraud, and investment scams, most reportedly run by Chinese nationals. Madagascar's Justice Ministry confirmed that 148 Chinese nationals had been extradited to China in connection with the crackdown. US authorities separately seized approximately $52 million in cryptocurrency in a single day and processed more than 3,200 electronic devices as part of the investigation, according to DOJ statements.

Human Trafficking at the Heart of the Networks

Investigators found that some African nationals recruited to work in Madagascar may themselves have been victims of human trafficking rather than willing participants. Around 20 nationals from Kenya, Rwanda, Uganda, and Zimbabwe were in custody in connection with the investigation, officials said. Hassan Mouigni, head of the police crime unit, said these individuals had allegedly been lured through Facebook with promises of legitimate commercial employment.

'But when they arrived here, most of the passports were confiscated by the boss, and they were forced to scam,' Mouigni said, adding that the recruits had been deceived. Despite preliminary findings suggesting they may have been trafficking victims, several African nationals reportedly remained in custody, raising questions about the treatment of potential victims within the justice process.

The Cambodia Connection and Relocation Trail

The DOJ reportedly identified a Malaysian national, Chui Kok Wa, as the alleged operator of a romance scam scheme based at a villa in Ivato, an upscale neighbourhood near Madagascar's capital, Antananarivo. Mouigni said an examination of Chui's passport indicated he had first arrived in Madagascar in 2024 and had previously travelled to Cambodia. The DOJ reportedly assessed that Chui's criminal group established scam compounds in Madagascar in early 2025, likely relocating from Cambodia after law enforcement action there.

Tsitohaina Ralihivao, coordinator of the cybercrime unit at Madagascar's communications ministry, directly linked the relocation to a 2025 crackdown on scam compounds in Cambodia near the Thai border. 'When the Thais dismantled them, they just relocated the operations. The same organisations came to Madagascar,' Ralihivao said. An FBI court document cited by the DOJ supported this assessment: three Brazilian nationals told investigators they had responded to online job advertisements, wound up working at a scam compound in Cambodia, and were then moved to Antananarivo in early May 2026.

The FBI document attributed the relocation partly to the armed conflict between Cambodia and Thailand and partly to police action. 'Cyber scam centres are increasingly opening in Africa following the closure of such compounds in Southeast Asia,' the FBI said, according to reports. The United Nations Office on Drugs and Crime had previously warned about precisely this kind of southern expansion.

A Prison Scandal and Operational Shifts

The investigation was also clouded by a widely publicised scandal: in August, 11 Chinese nationals arrested during the crackdown reportedly walked free from a Madagascan prison. The episode triggered allegations implicating the head of the country's prison service, raising concerns about institutional integrity in the host country. Separately, a US federal law enforcement officer noted in court documents that Chinese nationals identified as leaders of the operations could not be questioned by the FBI after their extradition to Beijing.

Authorities also noted a shift in how the compounds operated: networks initially occupied discreet villas but later began renting entire hotels, including the Live Hotel in Antananarivo, which was allegedly headed by a Chinese national who was among those extradited. Mouigni said the networks specifically recruited workers from English-speaking African countries because their operations primarily targeted English-speaking markets, including the United States, Canada, and Pakistan.

What This Signals for Transnational Cybercrime

The Madagascar case illustrates a broader and troubling pattern: as Southeast Asian governments tighten enforcement, transnational cybercrime networks are not dismantling — they are migrating, finding new jurisdictions with weaker oversight and more porous institutions. Africa's emerging role as a relocation destination, flagged by both the FBI and the UN, suggests that the geographic front of this problem is expanding faster than international law enforcement can coordinate. How effectively extraditing nations like Madagascar can distinguish trafficked victims from criminal operators will be a critical test of the global response going forward.