Pirro announces Scam Center Strike Force to target Chinese organized crime – Fox Business

Report on U.S. Initiative to Combat Transnational Organized Crime and Illicit Financial Flows

Introduction: Aligning with SDG 16 (Peace, Justice and Strong Institutions)

The United States Attorney’s Office has announced the formation of a new Scam Center Strike Force. This initiative directly supports Sustainable Development Goal 16 by aiming to combat organized crime and significantly reduce illicit financial flows. The strike force will target Chinese organized crime syndicates and associated scam centers in Southeast Asia that perpetrate fraudulent cryptocurrency investment schemes against American citizens.

Financial Impact and Targeting of Vulnerable Populations (SDG 10)

These criminal activities undermine economic stability and exacerbate inequalities, running counter to SDG 10 (Reduced Inequalities). Financial losses from these scams exceeded $9 billion in 2024, with actual figures potentially being significantly higher due to underreporting. The syndicates disproportionately target vulnerable populations, particularly older Americans, exploiting loneliness to perpetrate fraud.

• Scammers initiate contact on social media platforms, often feigning an accidental message.
• They build trust with the victim over time.
• The conversation is moved to encrypted communication platforms to evade detection.
• Victims are then directed from legitimate cryptocurrency platforms to fraudulent ones controlled by the criminals, resulting in the loss of their investments.

Strike Force Mandate and Contribution to SDG 16.4

The mission of the strike force is to strengthen justice and institutional response, directly contributing to SDG 16.4, which calls for the reduction of illicit financial flows and the recovery of stolen assets. The primary objectives are:

1. To identify and prosecute the leaders of these cryptocurrency scam organizations.
2. To trace and recover stolen funds for restitution to the victims.
3. To seize and disable the U.S.-based infrastructure, including websites, used to facilitate the scams.

Initial actions by the strike force have resulted in the seizure of $400 million, with pending actions to recover an additional $80 million for victims.

International Cooperation and Sanctions: Addressing SDG 16 and SDG 8

In a coordinated effort, the U.S. Treasury Department has imposed sanctions on entities supporting these criminal networks, reinforcing international cooperation to combat crime (SDG 16). The sanctions target an armed group in Burma, the Democratic Karen Benevolent Army (DKBA), and its leaders for their role in supporting cyber scam centers. This action also addresses SDG 8 (Decent Work and Economic Growth), specifically Target 8.7, by combating networks involved in human trafficking.

• Sanctioned Group: Democratic Karen Benevolent Army (DKBA)
• Associated Entities: Trans Asia International Holding Group Thailand Company Limited, Troth Star Company Limited
• Associated Individual: Thai national Chamu Sawang

Under Secretary of the Treasury John K. Hurley stated, “Criminal networks operating out of Burma are stealing billions of dollars from hardworking Americans through online scams. These same networks traffic human beings and help fuel Burma’s brutal civil war.”

Multi-Stakeholder Partnerships for Sustainable Development (SDG 17)

The initiative exemplifies SDG 17 (Partnerships for the Goals) through the establishment of public-private partnerships. Corporations including Meta, Microsoft, and the civil society organization AARP are collaborating with the strike force. This multi-stakeholder approach leverages shared expertise and resources to enhance the protection of American citizens from fraudulent schemes and strengthen the overall response to transnational organized crime.

SDGs Addressed in the Article

1. SDG 16: Peace, Justice and Strong Institutions

   • The article’s central theme is the establishment of a “Scam Center Strike Force” to combat transnational organized crime, specifically Chinese syndicates involved in financial fraud. This directly aligns with SDG 16’s goal to promote just, peaceful, and inclusive societies by strengthening institutions, providing access to justice, and combating crime. The actions described, such as charging leaders, seizing assets, and disabling criminal infrastructure, are core components of building strong institutions and upholding the rule of law.

2. SDG 8: Decent Work and Economic Growth

   • The article connects the financial scams to broader criminal activities. The Under Secretary of the Treasury is quoted stating, “These same networks traffic human beings and help fuel Burma’s brutal civil war.” The mention of human trafficking directly links the issue to SDG 8, which aims to eradicate forced labor, end modern slavery, and human trafficking.

3. SDG 10: Reduced Inequalities

   • The article explicitly identifies a vulnerable group being targeted by these crimes. It notes that scammers “prey on older Americans because of their loneliness.” This focus on a specific demographic based on age and social vulnerability connects the issue to SDG 10, which aims to reduce inequality by empowering and promoting the social and economic inclusion of all, irrespective of age. Protecting older citizens from financial exploitation that could devastate their life savings is a direct measure to prevent their economic exclusion.

4. SDG 17: Partnerships for the Goals

   • The article highlights collaboration between different sectors to address the problem. It mentions that “companies such as Meta, Microsoft and AARP have reached out to work with the strike force.” This formation of a multi-stakeholder partnership, involving government (strike force), the private sector (tech companies), and civil society (AARP), is a key aspect of SDG 17, which emphasizes the importance of collaboration to achieve sustainable development goals.

Specific SDG Targets Identified

1. Target 16.4: Significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime.

   • This target is directly addressed through the entire mission of the strike force. The article discusses combating “Chinese organized crime syndicates,” reducing illicit financial flows from “fraudulent cryptocurrency investments,” and strengthening the recovery of stolen assets by tracing “the stolen funds and return them to victims.”

2. Target 16.a: Strengthen relevant national institutions, including through international cooperation… to prevent violence and combat… crime.

   • The announcement of the “new Scam Center Strike Force” is a clear example of strengthening a national institution to combat crime. Furthermore, the problem is international, involving syndicates in Southeast Asia and targeting Americans, and the response involves sanctions by the Treasury Department on groups in Burma, indicating the necessity of international cooperation.

3. Target 8.7: Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking…

   • This target is identified through the statement that the criminal networks responsible for the scams also “traffic human beings.” This links the fight against financial fraud to the broader fight against human trafficking and modern slavery.

4. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age…

   • The article’s statement that scammers “prey on older Americans” makes this target relevant. The efforts of the strike force to protect this specific age group from devastating financial loss is an action that helps prevent their economic exclusion and protects their well-being.

5. Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships…

   • This target is demonstrated by the collaboration mentioned at the end of the article, where “Meta, Microsoft and AARP have reached out to work with the strike force.” This partnership between government, corporations, and a non-profit organization exemplifies the multi-stakeholder approach needed to tackle complex issues like cybercrime.

Indicators for Measuring Progress

1. Indicators for Target 16.4

   • Value of illicit financial flows: The article provides a direct monetary value for this indicator, stating that “fraudsters scammed Americans out of more than $9 billion in 2024 alone.” This figure can be used as a baseline to measure the effectiveness of the strike force in reducing these flows.
   • Value of seized assets returned to victims: Progress can be measured by the amount of money recovered. The article states the strike force has “already seized $400 million and filed actions to seize an additional $80 million that will be returned to victims.”

2. Indicators for Target 16.a

   • Existence of independent national institutions to combat crime: The creation and operation of the “new Scam Center Strike Force” serves as a qualitative indicator that national institutions are being strengthened to combat this specific type of crime.

3. Indicators for Target 8.7

   • Existence of human trafficking linked to other forms of organized crime: The article implies this indicator by explicitly stating that the “criminal networks operating out of Burma” are involved in both online scams and human trafficking. While no numbers are given, identifying this link is a crucial first step in measurement and action.

4. Indicators for Target 10.2

   • Reported cases of financial exploitation of a specific demographic: The article implies this indicator by highlighting that “older Americans” are a primary target. A reduction in reported scam cases from this demographic would indicate progress toward protecting them and reducing their vulnerability.

5. Indicators for Target 17.16

   • Formation of multi-stakeholder partnerships: The article provides a clear example of this indicator by naming the specific partners—”Meta, Microsoft and AARP”—that are collaborating with the government’s strike force. The existence and effectiveness of this partnership is a measure of progress.

Summary Table of SDGs, Targets, and Indicators

Source: foxbusiness.com