Myanmar Junta Cracks Down on Shwe Kokko Scam Hub, Arresting Nearly 1,600 Foreigners & Seizing Vast Tech

Myanmar Junta Launches Major Crackdown on Shwe Kokko Scam Hub, Arresting Nearly 1,600 Foreigners

Myanmar's military junta has announced a significant five-day crackdown on the notorious internet scam hub of Shwe Kokko, located along the Thai border. The operation, spanning from November 18 to 22, resulted in the arrest of nearly 1,600 foreign nationals accused of illegal entry and involvement in widespread online fraud. This highly publicized raid targets a region infamous for its sprawling "fraud factories" that have ensnared countless internet users globally through elaborate romance and business scams, reportedly generating tens of billions of dollars annually.

International Pressure and Junta's Response

For years, Myanmar's junta faced accusations of turning a blind eye to the burgeoning illicit industry. However, pressure, particularly from key military backer China, appears to have spurred a change in approach. Experts suggest Beijing's lobbying efforts, intensifying since February, prompted the regime to initiate this crackdown. Some observers, however, view earlier raids as potentially choreographed "smokescreens" designed to appease Beijing without significantly impacting the illicit profits that benefit the junta's allied militias.

Details of the Shwe Kokko Raids

The recent raids on Shwe Kokko, a well-known gambling and fraud center, led to the detention of 1,590 foreign nationals, as reported by state media outlet The Global New Light of Myanmar. Beyond the arrests, authorities confiscated a staggering amount of equipment vital to these operations: 2,893 computers, 21,750 mobile phones, 101 Starlink satellite receivers, 21 routers, and a large quantity of industrial materials associated with online fraud and gambling activities.

Starlink's Role and Equipment Destruction

Interestingly, the seizure of Starlink receivers follows an AFP investigation in October that exposed the mass installation of these satellite internet devices within scam compounds. In response, Elon Musk's Starlink company subsequently disabled over 2,500 devices in areas suspected of housing Myanmar's scam centers.

On November 22 alone, 223 individuals, including 100 Chinese nationals, were apprehended for their alleged roles in online fraud and gambling at Shwe Kokko. Local media footage depicted a dramatic scene of a steamroller demolishing hundreds of computer monitors alongside piles of smashed mobile phones at the compound, underscoring the scale of the operation.

Broader Context of Scam Operations

The proliferation of these scam hubs, which rely on both willing workers and individuals trafficked from abroad, has been a growing concern in Myanmar's loosely governed borderlands, especially since the 2021 coup plunged the country into civil war. While China remains a crucial supporter of the junta, analysts point to Beijing's increasing frustration over the rampant scams that not only target its own citizens but also enlist them. A UN report estimated that scam victims in South-east and East Asia alone lost up to US$37 billion in 2023, with global losses likely to be far greater.