Myanmar Spring Chronicle – January 18 Scene
MoeMaKa, January 19, 2025
Myawaddy’s Online Scam Organizations and the Junta’s Responsibility
The human trafficking and forced labor associated with online scam organizations in Myawaddy Township have escalated from a local issue to a transnational crisis. It now requires cooperation from international governments to address effectively.
The online scam organizations, commonly referred to in Myanmar as “Kyarr Phyay” (online scam networks), engage in fraudulent schemes that transcend borders. These operations target individuals in neighboring countries and as far away as South America. The crimes, including human trafficking, forced labor, torture, and financial fraud, constitute a major international criminal enterprise. China’s citizens and interests being implicated in these operations have prompted its government to explore robust countermeasures.
Growth of Online Scam Organizations in Myawaddy
Regions in Myawaddy controlled by armed groups, such as the Border Guard Force (BGF) and other Karen armed factions, have seen the proliferation of these online scam organizations. Their transformation from gambling operations to large-scale scam networks is widely recognized.
Even before the military coup in 2021 and the COVID-19 pandemic in 2020, casino and gambling businesses were booming in Shwe Kokko near Myawaddy under BGF oversight. These operations provided substantial financial gains for the BGF, operating under the Myanmar military’s control.
During the NLD-led government, there was limited ability to intervene in these businesses due to the military’s dominance over the BGF. Reports from 2019 indicate attempts to address irregularities in Shwe Kokko’s urban development project, which involved Chinese investments. However, the NLD government lacked the autonomy to implement effective measures.
COVID-19’s Role in Transformation
The COVID-19 pandemic forced gambling enterprises to pivot toward online scams. With foreign gamblers no longer visiting, these businesses shifted to recruiting workers under false pretenses, exploiting them for fraudulent online activities. The rapid growth of these scam networks brought widespread human trafficking and forced labor into focus.
Why Myawaddy Became the Hub
Shwe Kokko and KK Park’s proximity to the Thai border facilitates the operations of these online scam organizations. Thai cities like Mae Sot are just minutes across the river, enabling easy access. The absence of effective law enforcement in Myanmar and the influence of armed groups make the region a favorable base for such activities.
Armed Groups and Accountability
Despite ongoing conflicts in Karen State and Mon State after the 2021 coup, online scam organizations have continued to operate unimpeded. These businesses rely on agreements with armed groups, including the BGF and DKBA, who control the region.
The BGF, operating under junta influence, played a key role in the rise of these operations. Although there are claims that ties between the junta and the BGF have weakened, the true extent of their collaboration remains unclear.
Broader Implications
The growth of online scam organizations reflects systemic issues in Myanmar, such as weak rule of law, political instability, ongoing armed conflicts, and widespread corruption. These factors have created an environment where organized crime can flourish, leaving local and international communities grappling with its consequences.
In summary, the rise of online scam organizations in Myawaddy highlights the consequences of militarized governance, regional conflicts, and unchecked corruption. Tackling this issue will require addressing these underlying factors alongside coordinated international efforts.