Trafficking and crime will rise after US foreign aid freeze, experts say

Abdul Salam was initially drawn to Cambodia by a computer operator job offering a monthly salary of $1,000 (approximately $1,592 USD). The textile engineer from Bangladesh, upon arriving in Phnom Penh, was instead taken by intermediaries to a remote area 270 kilometers from the capital, Dala Sach, and trafficked into an online scam compound. He felt deceived and trapped by the false promises.

"I thought it was a 'golden ticket' to support my family," he recalled. "But when I arrived, I realized there was no way out." Within the heavily guarded compound, Salam was forced to build relationships with victims on social media and persuade them to invest in fake cryptocurrency projects. He was sold to three different compound bosses. "They beat people with baseball bats, electrocuted them—there was no way to escape, and they took my passport," he said, emphasizing the brutality and control.

Eventually, with the help of a global anti-scam organization, Salam was rescued and returned to Bangladesh. Now, he works as a survivor empowerment and communication officer at a humanitarian research consultancy, helping others escape human trafficking. "Through my own experience, I provide intelligence to law enforcement and support other survivors," he said, highlighting his commitment to fighting trafficking. "I know what's at stake."

According to the United Nations Human Rights Office, hundreds of thousands of people are trafficked to Southeast Asia each year to engage in cybercrime, including romance investment scams and cryptocurrency fraud. However, Salam's projects in the region with partners funded by USAID have been put on hold after U.S. President Trump issued an executive order freezing all foreign aid funding for 90 days to assess whether it aligns with the "America First" policy. This sudden halt in funding has created significant challenges.

The survivor-led workshops he participates in, as well as research projects focused on tracking trafficking intermediaries and collecting evidence for legal cases, are now at risk. Myanmar, Cambodia, and Laos are major hotspots for online scam activities, with victims often trafficked through Thailand via false recruitment schemes. "Crime rates will rise," Salam said, expressing concern about the consequences. "If these stakeholders stop their work to combat human trafficking and forced labor, it will leave a huge void."

Blue Dragon, a Vietnam-based NGO dedicated to helping rescue victims of human trafficking, expressed deep concern over the funding freeze. "This is a win for the traffickers," said Michael Brosowski, the organization's founder. "Our funding is at the mid-point, and now we can't access that funding… We're trying to figure out what work has to be cut and what staff we might have to let go," illustrating the immediate impact on their operations.

Brosowski stated that criminal gangs have moved beyond traditional Vietnamese smuggling routes. Victims are no longer trafficked to Chinese factories for forced marriage or labor but are instead lured into scams in Thailand and Myanmar through social media. "These traffickers no longer need to lure victims one by one," Brosowski said, emphasizing the changing tactics. "They can operate on an unprecedented scale, handling 20 people online at a time, making their activities harder to detect across various social channels."

To address this issue, Blue Dragon has developed a new approach in recent years, training and building grassroots systems to prevent trafficking before it happens. One key initiative is the anti-trafficking committee, a local group of teachers, police officers, and community leaders responsible for identifying and protecting individuals at risk. But now, these efforts face uncertainty due to the funding cuts.

Freedom Collaborative, a network of NGOs dedicated to combating human trafficking and slavery, is also feeling the strain. Julia Maher, the organization's CEO, stated that 85% of her budget has disappeared due to the USAID funding freeze. "The biggest impact is our ability to respond to trafficking linked to scam centers," she said, highlighting the immediate consequences. "We have been coordinating (rescue) teams, but since the crisis began, raising funds has been almost impossible."

Maher emphasized that while awareness of the issue has increased, attention alone does not fund action. "In Cambodia, fundraising is dangerous, and USAID support is critical—not just for rescues but also for financial investigations and private sector partnerships aimed at dismantling these criminal networks." She questioned the sustainability of rescue efforts, asking, "Without funding for survivors, without support funding, without even (survivors') flights—who will do the reconnaissance?"

"Without resources, the entire anti-trafficking system is at risk of collapse. These scams are operating on an industrial scale. If we don't act, we won't understand the evolution of the problem, let alone stop it," she added, stressing the urgency of the situation. She also highlighted the dangers of working in authoritarian environments where disinformation is rampant. "In places like Cambodia, you can't trust what the government says, and independent verification is essential," Maher said. "Without funding, we lose the ability to verify the truth."

In Myanmar, Salai Za Uk Ling, head of the Chin Human Rights Organization, stated that 30% of their funding is affected by the freeze, leading to staff layoffs and reduced activity within Myanmar. "Our ability to document human rights abuses will be reduced, so perpetrators can act with impunity," he said, warning of the consequences. He cautioned that the dynamics of the conflict in Myanmar are still changing, and their field investigations will be impacted. "More people displaced by airstrikes are trying to find safety and may risk traveling to another country, entrusting their lives to traffickers."

Jacob Sims, an expert on transnational crime in Asia, stated that trafficking to scam compounds is "the fastest-growing form of organized crime globally." He added, "This is not just a regional crisis… it is a growing U.S. national security crisis," emphasizing the broader implications. Billionaire Elon Musk, head of Trump's newly formed Department of Government Efficiency (DOGE), stated on X that USAID "has been run by a bunch of radical lunatics." Musk continued, "We are getting rid of them, and then we will make a (decision about its future)."

Experts warn that conspiracy theories about U.S. foreign aid emanating from the White House put U.S. nationals and international aid workers at risk. "When you see the relationship between Washington D.C. and the embassies starting to noticeably deteriorate, you're going to see hostile and outright criminal regimes start to test the waters," Sims said, highlighting the potential for exploitation. Maher dismissed the suggestion that NGOs can simply "diversify" their funding sources. "I'm tired of hearing that advice," she said. "When there is no available support, and you are in a place where openly sharing what you do puts you at risk, diversification is obviously impossible."