By Windia Soe
Imagine being lured by a dream job only to be trapped in a nightmare. This is the grim reality for thousands in Myanmar’s vast cyber scam industry.
Key Takeaways:
Political instability has made Myanmar a center for cybercrime and human trafficking, with criminal syndicates exploiting the lawlessness for online fraud.
Myanmar-based scams, like “pig butchering,” are responsible for billions in global losses, targeting victims worldwide through romance, investment, and cryptocurrency fraud.
Urgent international cooperation is required to dismantle criminal networks, with enhanced intelligence-sharing among neighboring countries to curb the crisis.
The Explosive Rise of Cyber Scam Syndicates in Myanmar
In recent years, in 2021, China has intensified efforts to combat cybercrime by enacting the Personal Information Protection Law (PIPL) and Data Security Law (DSL) to reinforce China’s commitment to data security. Additionally, the Chinese government banned cryptocurrency trading, mining, and advertisements while implementing stricter anti-money laundering measures and crackdowns on telecom and online fraud. These regulatory shifts have made it increasingly difficult for cybercriminals to operate within China.
As a result, many cybercriminal syndicates adapted new methods and relocated their operations abroad to exploit stolen personal data for fraudulent schemes. Among their top destinations, Myanmar—already grappling with post-coup instability—emerged as a prime hub for cyber fraud and organized crime**.** Using lawlessness, economic turmoil, and the country’s strategic location, transnational crime syndicates have established large-scale scam operations. These operations not only cause significant financial damage but also involve human trafficking.
The Kokang Region and Myawaddy, located on Myanmar’s borders with China and Thailand, have historically been hotspots for illicit activities due to their strategic locations, ethnic armed conflicts, and weak central government control. From 1950-1990, Kokang was central to the Golden Triangle’s opium trade, while Myawaddy facilitated drug trafficking. By 2000-2020, both areas shifted toward gambling and underground financial schemes, fueled by cross-border investments and Special Economic Zones. Since 2020, they have become centers for large-scale online scams, supported by SEZ infrastructure and armed group protection.
Myanmar’s endemic corruption and lawlessness have further enabled these criminal networks, making these border regions major players in transnational crime. Additionally, widespread unemployment has pushed many into these illicit enterprises as direct participants or middlemen. The digital shift accelerated by the COVID-19 pandemic has further fueled this crisis as more people engage with online platforms, making them easy targets for cyber fraud.
The Rise of Cybercrime-Driven Human Trafficking in Myanmar
Myanmar faces a severe crisis of cybercrime-driven human trafficking, as evidenced by its top ranking in the Global Organized Crime Index. The surge in human trafficking within the country, reaching 8.50 in 2023 from 6.50 in 2021, underscores the escalating prevalence of forced labor and sexual exploitation.
Beginning around 2020, criminal networks across Myanmar, Cambodia, Laos, and Thailand have rapidly adapted to technological advancements, significantly expanding their reach and effectiveness. These syndicates utilize social media and sophisticated cryptocurrency scams to deceive victims and evade law enforcement.
Cybercrime syndicates have refined their recruitment strategies to fuel these operations, deploying deceptive job offers that promise lucrative salaries and professional advancement. They strategically target young, educated, multilingual individuals with IT skills, recognizing their value in executing complex scams. Job advertisements for positions in customer service, online marketing, and tech support are widely disseminated across ASEAN nations, China, Africa, Latin America, and the Middle East, demonstrating the global scope of their recruitment efforts.
The scale of this forced criminality is vast. According to the 2022 Global Report on Trafficking in Persons, 10.2% of reported trafficking cases are linked to forced criminality. In Cambodia alone, crime networks have lured between 50,000 and 100,000 people into slave-like conditions, and it is assumed that the numbers are significantly higher in Myanmar. Credible sources estimate that over 120,000 individuals in Myanmar may be trapped in forced online scam operations. The global scale of this crisis is further underscored by a 2023 UNODC report stating:
“Overall, international NGOs have identified over 40 nationalities of trafficking victims in scam compounds in Southeast Asia.”.
The Twin Horrors of Cyber Scams: Life Inside the Fraud Factories and Financial Fraud
The reality for those recruited is a stark contrast to the promises made. Once victims arrive at the supposed workplaces, they are subjected to horrific conditions. Their passports and personal belongings are confiscated and confined to heavily guarded compounds. Under constant threats of violence, they are compelled to participate in fraudulent schemes, such as romance scams, investment fraud, and cryptocurrency deception.
Notably, romance scams surged by one-fifth in 2023, disproportionately targetingmen aged 55 to 64, who accounted for 52% of reported cases. Many victims were financially stable professionals or retirees seeking companionship online. A 2023 survey found that 66% of respondents in India encountered online dating scams. In Europe, 1%–3% of the population reported being victims (2020), while nearly 70,000 cases in the U.S. in 2022.
The notorious “pig butchering” scam involves deceiving victims before exploiting them financially, resulting in staggering losses. Between 2020 and 2024, Southeast Asian-based cyber scams led to global losses of approximately $75 billion and an estimated annual loss of $43.8 billion in Southeast Asia. In the U.S. alone, Americans suffered estimated losses of $2.6 billion in 2022 due to pig butchering and cryptocurrency fraud.
Those who fail to meet financial quotas result in brutal punishments, including beatings, starvation, and further trafficking into other forms of forced labor and sexual exploitation. While the financial impact is devastating, the human cost—marked by psychological trauma, exploitation, and shattered lives—is immeasurable.
Myanmar’s Cyber Scam Crackdown: Operation 1027’s Ripple Effect
Fueled by China’s growing frustration with cyber-scam operations targeting its citizens along the China-Myanmar border and following a reported massacre at a Shan State scam center, the Three Brotherhood Alliance launched Operation 1027, a coordinated offensive against the Myanmar military junta in northern Shan State. With multiple objectives, including dismantling online fraud, this operation gained momentum due to tacit Chinese support.
This offensive led to the rescue of thousands of trafficked victims, primarily Chinese nationals. By late November 2023, a major milestone was achieved, with over 31,000 suspects handed over to Chinese authorities. Despite the significant disruptions in Shan State, cybercrime syndicates have proven highly adaptable, relocating operations southward to Karen State along the Thai border. Furthermore, cybercriminals are increasingly leveraging AI and advanced translation tools to streamline their scams, reducing reliance on trafficked workers fluent in specific languages.
As these networks relocate, fueled by recent reports of the trafficking of Chinese model and actor Wang Xing at the Myanmar-Thai border, Thailand has responded by cutting electricity, internet, and fuel to Myanmar’s border areas to dismantle cross-border scam compounds. Meanwhile, the impact on local communities is evident, with many facing power cuts while Chinese businesses, including scam centers, continue running on generators.
Thailand’s Department of Special Investigation (DSI) is also seeking warrants for three Karen BGF leaders—Saw Chit Thu, Tin Win, and Mote Thone—accused of profiting from transnational crimes through land control and real estate linked to scams. However, prosecutors rejected the request due to insufficient evidence. In an exclusive interview, Saw Chit Thu denied involvement, claiming he only leases land, has no ties to scam operations, and emphasized cooperation with Thai authorities.
Despite these legal hurdles, this crackdown is intensifying. Still, the long-term question remains: can these deeply entrenched criminal networks be fully dismantled, or will they evolve and resurface elsewhere?
Myanmar’s Cybercrime Inferno: A Global Call for Stakeholder Action
Myanmar’s surge in cybercrime, human trafficking, exploitation, and abuse has created an urgent crisis demanding immediate action. However, with the military focused on consolidating power and suppressing internal conflicts, it remains unable and unwilling to tackle these issues. Moreover, its Border Guard Forces, militias, and allied groups are not just turning a blind eye but are directly implicated in facilitating and securing these scam operations.
Recognizing the dire need for action, the NUG outlined plans for self-governing territories to combat cybercrime in its January 2025 Joint Statement, calling for enhanced intelligence-sharing between neighboring countries to address these transnational crimes.
In this context, international collaboration has never been more critical, but Myanmar’s political isolation and ongoing sanctions severely hinder effective cooperation. Without decisive regional and global intervention, these criminal enterprises will continue to thrive, further undermining Myanmar’s security and governance while exposing citizens worldwide to devastating threats.