Myanmar Junta Bows to Global Pressure, Targets Border Scam Centers
Myanmar's ruling military junta has reportedly initiated an urgent crackdown on rampant cyber scam operations flourishing along its borders. This decisive action is primarily driven by escalating international pressure and fears of direct intervention from the United States. Senior General Min Aung Hlaing, the junta leader, issued a direct order for the "eradication" of these fraudulent centers, emphasizing it as a "national responsibility" crucial for salvaging the nation's tarnished international image.
The Genesis of a Crackdown
Last week, following a visit by Gen Min Aung Hlaing to Hpa-An, a south-eastern city, military officers convened with the Karen National Army (KNA), a powerful local militia. The directive was unequivocal: immediately suppress the burgeoning scam centers situated near the Thai-Myanmar border. These online fraud operations constitute a critical component of sophisticated Southeast Asian criminal networks, spanning countries like Myanmar and Cambodia. They are responsible for generating billions annually by defrauding victims globally, often exploiting victims of human trafficking.
Sources with direct knowledge of the November 16 discussions revealed that officers informed KNA members – a group sanctioned by the US Treasury in May for its alleged involvement in cyber scams and human trafficking – that the orders originated directly from the junta chief. Gen Min Aung Hlaing reportedly stressed the severe damage these centers inflicted on Myanmar's international standing and urged an "aggressive crackdown before the election" – a multi-phase general election slated to begin on December 28, widely dismissed as a façade to legitimize ongoing military rule.
Fears of US Intervention Spark Urgency
While the junta has publicly claimed participation in multinational anti-scam efforts, the sudden urgency appears significantly linked to anxieties over potential US actions. The recent announcement of a new US government "Strike Force," comprising agencies like the Federal Bureau of Investigation (FBI) and the Secret Service, has reportedly raised significant concern within the Myanmar junta. An official at the KNA meeting reportedly articulated the fear of US teams crossing the border for investigations, emphasizing, "We must solve the problem ourselves."
This revelation, first reported by Reuters, underscores a momentous shift: after years of largely ignoring or tolerating these scam hubs, the junta is now bending to formidable global pressure. Unlike other ethnic militias, the KNA maintains close ties with the junta, despite US allegations of its active involvement in scam activities.
Operations Underway in Myawaddy
By November 18, joint operations commenced around Myawaddy, a pivotal frontier town and notorious hub for scam compounds and human trafficking. Myanmar state media reported the demolition of over 180 buildings, the detention of over 1,000 foreign nationals, and the seizure of thousands of computers and mobile phones by November 21. However, a KNA spokesperson, Naing Maung Zaw, told Reuters that the militia initiated the crackdown, with the military joining later. "Our leader decided that cooperating with the military might make some processes smoother," he stated, asserting KNA leadership in the operations.
The Evolution of Scam Empires
Southeast Asia's scam operations trace their origins to loosely regulated casinos and online gambling in the 1990s. They witnessed exponential growth during the COVID-19 pandemic as criminal organizations sought new revenue streams amid lockdowns. Shwe Kokko, a major scam compound in Myawaddy, established in 2017 by the Hong Kong-registered Yatai International Holdings Group and a KNA precursor, was initially marketed as a casino destination. The company denies criminal involvement.
These Myawaddy compounds gained significant notoriety in January following the high-profile abduction of a Chinese actor in Thailand, which spurred multinational efforts to dismantle these illicit businesses. Previously, the Myanmar military government claimed limited authority in remote border regions, largely remaining on the sidelines – until now.
International Powers Mobilize
Jason Tower, a senior expert at the Global Initiative against Transnational Organized Crime, identified the US "Scam Centre Strike Force" announcement as the pivotal game-changer. Further compounding pressure, Thailand recently extradited gambling kingpin She Zhijiang, who once headed the Shwe Kokko complex, to China. Tower remarked, "Two global powers pushing for a crackdown puts the Myanmar military and its BGF (KNA) in a difficult position," highlighting the growing international consensus to address the "massive threat to global security that the scam centers present."