By Amira Abuzeid
Published October 9, 2026 at 5:18 PM ET

             The State Department released its 2026 Trafficking in Persons (TIP) Report on Oct. 8, showing criminal organizations and repressive governments are using trafficking for profit in new ways.

             The report, released more than three months after the June 30 deadline, said the spread of industrial-scale online scam operations “pose a direct threat to US national security.”

             Transnational crime organizations, mostly run by Chinese nationals and long based in Southeast Asia, have moved into Africa, the Middle East, Europe, and Latin America, destabilizing local communities and cheating people out of billions of dollars each year, according to the report.

             Fraudulent online romance, gambling, and cryptocurrency schemes have defrauded people in more than 125 countries, with Americans, the primary targets, losing at least $18.2 billion in 2025 to compounds operating out of Southeast Asia, according to the report.

Credit: Pungux/Shutterstock

             The organizations recruited people from at least 80 countries over the past few years through fraudulent schemes, often pushing them into forced labor and holding them in guarded compounds and manipulating them through violence, sexual exploitation, intimidation, and other acts. They are often coerced into committing crimes, the report found.

             The report, an annual assessment required by the Trafficking Victims Protection Act (TVPA) of 2000, covers April 1, 2025, through March 31.

             The State Department said it relied on information from embassy reporting, government officials, nongovernmental and international organizations, published reports, news articles, and other sources.

             The State Department said that governments that fail to punish traffickers and protect victims should be held accountable.

12 governments cited

             Twelve governments are cited in the report for a “policy or pattern” of state-sponsored human trafficking: Afghanistan, Belarus, Burma, Cambodia, China, Cuba, Eritrea, Iran, North Korea, Russia, South Sudan, and Sudan. This designation covers “trafficking in government-funded programs, forced labor in government-affiliated medical services or other sectors, sexual slavery in government camps, or the employment or recruitment of child soldiers.”

             Under the Child Soldiers Prevention Act, the department listed 14 countries whose forces or state-backed militias recruited or used children in any capacity during hostilities, including as sex slaves: Afghanistan, Burma, the Central African Republic, the Democratic Republic of Congo, Ethiopia, Iran, Nigeria, Russia, Rwanda, Somalia, South Sudan, Sudan, Venezuela, and Yemen.

             Among country rankings reported so far, Israel returned to Tier 1, the highest category, for the first time since 2021, after five years on Tier 2. The Republic of Congo was downgraded to Tier 3, the lowest, for failing to meet minimum standards and not making significant efforts. A Tier 3 listing can restrict certain U.S. assistance, including security assistance, the report said.

             A Tier 1 ranking does not mean that a country has no human trafficking. Instead, according to the report, “a Tier 1 ranking indicates that a government has made efforts to address the problem … and met the TVPA’s minimum standards.”

             Rep. Chris Smith, R-New Jersey, author of the Trafficking Victims Protection Act, said in a statement on Oct. 8 that the report’s findings are “a stark reminder that modern-day slavery remains a global scourge — and that governments must be held accountable when they fail to protect vulnerable people.”

             “Human trafficking is an assault on human dignity and freedom,” the congressman wrote. “The United States must continue to use every tool at its disposal — including the TIP Report — to expose human trafficking whenever it rears its ugly head, protect survivors, and press foreign governments to end this blight upon humanity.”

             “China remains on Tier 3 — the lowest ranking,” Smith continued, “reflecting its continued failure to meet the minimum standards for eliminating trafficking. The Chinese Communist Party’s (CCP) use and enabling of forced labor — including the systematic exploitation of Uyghurs and other persecuted minorities — is deeply troubling and deserves the greatest level of scrutiny.”

             “Moreover, the horrific, ongoing consequences of China’s one-child per couple policy can still be seen and felt today, as the Report notes that a gross disparity — tens of millions more boys than girls — has driven the demand for commercial sex trafficking and coercive marriages in the country,” Smith wrote.

             “Governments on Tier 3 — including China, North Korea, Iran, Russia, Burma, Belarus, Cambodia, Cuba, Laos, Nicaragua, Sudan, South Sudan, and Venezuela — can and must do more. Tier 3 must never become a permanent designation; it should serve as a dire warning and a call to action,” Smith wrote.