Starlink and Scams: Myanmar Cracks Down on Online Fraud, But Challenges Remain

In Myanmar, 45 individuals were detained on suspicion of involvement in a large-scale online fraud scheme in Shan State. During the raid, police confiscated Starlink equipment, mobile phones, and weapons. The measures to be imposed on the detainees remain undisclosed, among whom are 18 Chinese nationals.

Residents of Tangyan, where the law enforcement operation took place, report that fraud gangs continue their activities despite arrests and police raids. Criminals frequently relocate to evade detection, moving from place to place. Following a series of detentions in late 2023, many groups migrated to Tangyan from the Panghsang region. Locals note the conspicuous behavior of the fraudsters, who drive luxury vehicles and build high walls around their residences, which serve as both homes and operational hubs.

Illicit operations are also rampant in the border town of Muse, under junta control. Witnesses claim that some groups collaborate with local authorities, securing protection in return.

Since 2023, China has intensified its crackdown on fraudulent schemes in cooperation with Thailand, Laos, and Myanmar. During this period, more than 53,000 Chinese citizens suspected of such crimes have been apprehended. In November, Myanmar’s military leader visited China to discuss efforts to combat cross-border crimes. However, locals believe that most arrests are superficial, intended merely to placate Beijing.

Amid these developments, reports surfaced about a Laotian woman held captive by fraudsters in Karen State for over two years. She is forced to work 10 to 19 hours a day, with failed fraud attempts punished by torture. Her family sought help, but rescuing her from areas beyond Myanmar’s government control proved nearly impossible. Human rights advocates report that dozens of Laotian nationals remain under strict control, forced to work for fraud syndicates in Myanmar.

Since the COVID-19 pandemic tightened border controls between China and Myanmar, ethnic groups have shifted from illicit drug trade to digital illegal economies. Online scams, including investment fraud and financial extortion, have become lucrative sources of income. Many operations are linked to casinos, where victims of human trafficking endure conditions akin to modern slavery.

In February, it was revealed that the newly constructed “fraud factory,” KK Park, located on the Myanmar-Thailand border, generated nearly $100 million in less than two years. Employees at the factory are coerced into scams like the “Pig Butchering Scam,” a scheme where fraudsters gain victims’ trust through online conversations before deceiving them into fake investments.

Since mid-2023, China has persistently urged Myanmar’s authorities to take stringent action against the numerous cyber-fraud enclaves operating in border areas. This demand was spurred by a wave of scams employing the “Pig Butchering” technique, which targeted Chinese nationals. These criminal enclaves rely heavily on forced labor, with individuals trafficked illegally from neighboring countries.

Notably, a coalition of rebel groups in Myanmar recently seized control of Laukkai, a notorious hub for cyber fraud in the region that affected neighboring countries. The coalition has declared its mission to eradicate organized fraud operations, which thrived under the watchful eye of law enforcement loyal to the ruling junta.