Cambodia’s Stalled Development Turns It Into a Criminal Haven
In Cambodia, the number of special frauds by Japanese has been increasing rapidly in recent years. Eiya Takeya, a freelance journalist, takes a closer look behind the scenes.
A city full of ruins
Cambodia, a popular tourist destination with the UNESCO World Heritage site Angkor Wat, has in recent years gained notoriety as a hub for crimes such as special fraud. Why has Cambodia become a paradise for criminals? In November 2024, the author walked through hotels and locations that had been used as hideouts by Japanese special fraud groups.
After about five hours on a bus from the capital, Phnom Penh, the port city of Sihanoukville, overlooking the Gulf of Thailand, came into view. Cambodia’s average temperature is between 25 and 30 degrees Celsius, but on this day, with clear skies, it felt close to 40 degrees. As the bus entered the city, the author noticed an overwhelming number of ruins through the window.
“Sihanoukville became a key point in China’s Belt and Road Initiative, rapidly developing into what was expected to be a second Macau with casinos and beach resorts. However, due to the COVID-19 pandemic, Cambodia’s government’s online casino regulations, and capital withdrawals due to an economic downturn in mainland China, the development stalled. The dreams of the citizens were shattered,” said a Sihanoukville city official.
Caught in the turmoil of China’s ambitions, the city was left filled with ruins. Sihanoukville residents lament the situation.
“Originally, Sihanoukville was a laid-back beach resort where Cambodians from the city would occasionally visit for leisure. With the development, it transformed into a modern city resembling a Chinese town, and tourists who liked the original atmosphere gradually began to shy away. Moreover, development was halted midway. It has only resulted in negative outcomes.”
After the failed development, the ruined city began to appear in the news as a hub for special fraud groups. The bust of a Japanese fraud group of 19 people in Sihanoukville in January 2023 is still fresh in memory. This group is believed to have defrauded about 1.07 billion yen from 107 people across 26 prefectures from July 2021 to January 2023.
The author visited the hotel that had been used as a base for the group.
