While enforcement agencies point to transnational criminal ecosystems, some analysts warn against politicising the issue or framing it as a geopolitical confrontation with China.

Tower, however, said the scam issue risks becoming a “flashpoint” in already strained US-China relations.

“You have China-linked crime groups that are running amok across the region … that increasingly are making scamming money, stealing money from Americans, their top priority.”

Drawing parallels with the fentanyl crisis – an issue that has strained US ties with China over the supply of precursor chemicals – Tower noted that there are precedents for cooperation.

Both countries have set up a joint working group to start addressing some of the challenges around fentanyl, and a similar mechanism for online fraud could improve cross-border investigations.

US law enforcement needs to have good evidence and information about what is happening, especially in tracing money flows, Tower added.

“If things continue at this trend …  losses for the US are going to become astronomical in a few years.”