South-east Asia has emerged as the global epicentre of the online scamming industry, costing victims billions of US dollars every year, according to the United Nations. Much of this activity is linked to Chinese crime syndicates operating from fortified compounds in Myanmar, a nation grappling with a nationwide armed conflict since 2021.
Despite repeated security crackdowns and joint international operations that have freed tens of thousands of trafficked workers, scam networks have proven highly resilient. Rather than shutting down, they frequently relocate, adapting to pressure from authorities.
Crackdowns that fail to dismantle networks
In October, Myanmar’s military launched a high-profile raid on a major scam hub in Karen State, claiming it would eradicate online scams “from their roots”. However, local reports indicated that operations at other nearby compounds continued uninterrupted just days later.
This pattern reflects a broader regional challenge: enforcement actions disrupt individual sites but rarely dismantle the underlying networks that sustain the industry.
China border sealed, Thailand border porous
Field research along Myanmar’s borders shows stark contrasts in border enforcement. Along the frontier with China, security is intense. Internal checkpoints, strict ID verification, telecom controls and financial surveillance have made it “almost impossible” for ordinary people to cross informally or operate large scam centres near Chinese territory.
As a result, many scam compounds in northern Myanmar have closed since late 2023, when fighting intensified and border controls tightened further.
The situation is markedly different along the border with Thailand. Long used as a trade and migration corridor, this region remains relatively accessible. Towns like Mae Sot, just across from Karen State, serve as key hubs for refugees, aid workers and traders — and, increasingly, scam recruiters and brokers.
Thai checkpoints do exist, but they are shaped by humanitarian concerns and deep-rooted cross-border ties. This relative openness has allowed scam operations to cluster in Karen State, where Thai police estimate up to 100,000 people may be working in scam centres.
Inside Myanmar’s shifting checkpoints
Within Myanmar, checkpoints are run not by a single authority but by a patchwork of ethnic armed groups and militias. These checkpoints often function as revenue sources, taxing goods and people. Their locations and strictness shift with alliances and financial interests.
This fragmented system enables scam operators to move workers and equipment quickly, often with advance warning of raids. Reports suggest militias have even escorted scam workers out of hubs like Shwe Kokko and KK Park for hefty fees.
A trade that adapts, not ends
The UN warns that South-east Asia’s scam economy bends under pressure but does not break. Border controls and checkpoints do not eliminate the trade — they merely determine where it resurfaces next.