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International pressure might be having an effect on Myanmar's fraud factories

Monday, 24 November, 2025 - 06:05

They call them "scam centres" in the general media but that understates the true nature of the fraud factories in Myanmar and elsewhere. There workers, some voluntary and some forced, work in factory-like conditions, unable to leave their compounds and expected to reach high targets. Across South East Asia, governments, some of whom have their own problems with such places, are pointing to the region where Myanmar borders Thailand and saying that these fraud factories exist because the Myanmar military government, or junta, is benefiting from them. The junta is trying to prove those arguments wrong.

Yesterday, Agence France-Press reported that the junta has said that more than 1,500 "foreigners" had been arrested in raids on "scam hubs", the latest buzzword name for the fraud factories.

While other regional governments have sought the junta's co-operation to close down these industrialised fraud centres, those governments had nothing to trade with Myanmar. But China does because it supplies military hardware and in February, China made suggestions that it was planning to tie future supplies to the fraud factories, many of which target Chinese in China and elsewhere. Indeed, Chinese speakers are highly sought after by the criminals and there are many reports of Chinese speakers from around South East Asia being offered apparently real jobs in Thailand and then smuggled, or coerced, across the border to Myanmar.

In its report, AFP said "In its latest publicised tally, the junta said "1,590 foreign nationals who entered Myanmar illegally were arrested" from November 18 to 22 in raids on gambling and fraud hub Shwe Kokko, according to state media The Global New Light of Myanmar.

"Moreover, authorities seized 2,893 computers, 21,750 mobile phones, 101 Starlink satellite receivers, 21 Routers and a large number of industrial materials used in the online fraud and gambling activities," the newspaper said."

AFP is making this something of a cause and several weeks ago it publicised its research that showed that several fraud factories were using Elon Musk's Starlink which requires dedicated equipment to operate raising questions over supply chains and sanctions. Since that report, Starlink says it has cancelled service to more than 2,500 receivers in Myanmar.

There is as yet no news as to the fate of those arrested. In previous raids, the Myanmar authorities have been quick to judge and have determined that many were volunteers, in others, there have been bulk deportations across the border where Thai authorities have had to work out what to do with them, which has taken some time in what are reported to be poor conditions and some have been handed over to their national governments, formally deported but on the understanding that the governments will ascertain the nature of their involvement.

Malaysia, for example, has said that "most" of those it has received from fraud factories went willingly although many were taken aback by their treatment and conditions.

Those returned to China face the risk of conviction in a fraud trial leading to long sentences or, even, execution.


The Economic Crime Forum

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