Myanmar Spring Chronicle – February 6 Perspective
MoeMaKa, February 7, 2025
Scam Syndicates’ Safe Haven in Myanmar
For the past decade, criminal enterprises known as “scam syndicates” (referred to in Chinese as “Cyber Scam Gangs”) have rapidly expanded worldwide. These syndicates operate financial fraud schemes online, luring individuals from around the globe into employment under false pretenses, and then subjecting them to forced labor, abuse, and even killings. In extreme cases, victims are trafficked like slaves.
These criminal organizations originated in China, historically linked to the “Snakehead” human smuggling and trafficking rings based in Hong Kong and mainland China. With the rise of modern IT technologies, these groups have shifted their operations online, recruiting victims digitally and relocating their operations to territories where law enforcement is weak or absent.
Myanmar has become one such hub, particularly in conflict zones controlled by ethnic armed groups. Over the past decade, scam syndicates have established bases in Myanmar’s border regions, including the self-administered zones along the China-Myanmar border, as well as Karen and Mon states along the Thailand-Myanmar border. Armed groups provide protection for these operations in exchange for substantial revenues, often under the guise of “taxation” or “land lease fees.”
As scam syndicates expand, they relocate to new safe zones when necessary. Initially targeting ethnic Chinese populations, they have now broadened their scope to exploit victims from various nationalities. Social media, online payment systems, and other digital tools serve as platforms for their fraudulent schemes, causing billions of dollars in global losses annually.
China, facing immense fraud-related losses among its citizens, has pressured neighboring countries to crack down on these criminal networks. In late 2023, Beijing intensified its pressure on Myanmar’s northern Shan State, particularly in Kokang and Wa regions, leading to a joint military campaign by three ethnic armed groups. As a result, Myanmar’s junta was forced to surrender the Kokang self-administered zone’s leader to Chinese authorities.
Following the crackdown in northern Shan State, attention has shifted to scam operations in Karen and Mon states, particularly along the Thai border in Myawaddy and Three Pagodas Pass. Armed groups such as the Border Guard Force (BGF), affiliated with the Karen National Army (KNA), have become key players in sheltering these syndicates. Similarly, the Democratic Karen Benevolent Army (DKBA) has been implicated in protecting scam operations in the Three Pagodas Pass area.
While ethnic armed groups justify their military presence as part of their struggle for self-determination, prolonged conflicts have led some factions to prioritize economic survival over their original political objectives. This has resulted in alliances with criminal syndicates, transforming them into enforcers of illicit operations rather than protectors of their people.
Analysts argue that Myanmar’s ongoing civil war provides a fertile ground for scam operations, narcotics production, and human trafficking. As long as internal conflicts persist, such illicit activities will likely continue to thrive.
For now, Karen and Mon states remain under international scrutiny as scam syndicates’ primary strongholds. However, there is no immediate sign of an end to these operations, as the root causes—political instability and armed conflict—remain unresolved.