Collective action required: cracking down on cross-border online fraud in Southeast Asia (Article)
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By Phyo Lin Aung
Over the past decade, online fraud operations across Southeast Asia have evolved into one of the most pervasive forms of transnational crime in the region, generating vast profits through the exploitation of victims around the world. In 2024 alone, these schemes cost Americans an estimated $10 billion, illustrating both their global reach and their extraordinary financial impact.
Regional hotspots of scam operations
A handful of countries– the Philippines, Cambodia, Laos and Myanmar– have become preferred destinations for such criminal enterprises, as investors can easily secure land, business licenses, and even security guarantees to establish or protect their operations. In these permissive environments, large scam compounds have flourished, creating a deeply entrenched criminal ecosystem that preys on vulnerable populations worldwide.
Myanmar has emerged as one of the central hubs for these activities, particularly along its border with Thailand. Kayin State’s Myawaddy Township is now synonymous with some of the most notorious large-scale scam centers in the region. KK Park—also known as the KK Garden complex—has gained infamy due to its strategic location along the Moei River and its role in hosting transnational cybercrime networks. Shwe Kokko, an upscale development project, has similarly transformed into a significant stronghold for scam syndicates. Additional compounds across the Myawaddy area, including the Dongmei Zone, Taichang Park, Yatai New City, Apolo Park, and Yulong Bay Park, continue to operate with varying degrees of impunity. New scam sites have also been identified further south near the Phayathonzu and Phop Phra districts, highlighting a pattern of geographic expansion. Meanwhile, northern Shan State, which borders China, Laos, and Thailand, remains another area of high scam activity, as criminal groups take advantage of its instability. Myanmar government crackdowns in the area have led some operations to relocate toward Myawaddy, demonstrating how easily these networks can shift in response to pressure.
Cambodia faces similar challenges, with major scam centers identified in Poipet, Sihanoukville, Bavet, Phnom Penh, and Mondulkiri province. Many of these operations are housed in large compounds previously used as casinos or hotels, now repurposed into fortified cybercrime hubs. In Laos, the Golden Triangle Special Economic Zone (GTSEZ) in Bokeo Province, situated at the tri-border with Thailand and Myanmar, has become the primary location for cyber scam operations benefiting from minimal oversight. Meanwhile, the Philippines hosts scam operations in clandestine compounds run by transnational organized crime groups. These sites rarely have public-facing addresses and are typically uncovered only during targeted police raids, reflecting the covert and adaptable nature of the industry.
Technology fuels the expansion of scam networks
Technological advancements have further accelerated the proliferation of scam centers, providing criminals with sophisticated tools to exploit unsuspecting victims. According to a technology expert, many people unknowingly expose themselves to hacking simply by using weak passwords based on birthdays, names, or anniversaries. A single downloaded file can give scammers full control over a victim’s device. Once the file is opened, the phone’s camera is compromised first, followed by SMS access, enabling criminals to infiltrate mobile banking services. Apps such as KPay and WavePay are frequently targeted, allowing scammers to silently transfer money at night by intercepting verification codes while victims remain unaware.
Victims are not only hacked; they are also manipulated. Those seeking quick wealth are enticed into downloading fraudulent investment apps for stocks, oil, or gold. When such apps request permissions for cameras, files, and notifications, users unknowingly hand scammers complete control over their phones. Dating apps, many now enhanced by AI-generated models, also serve as traps for emotional and financial exploitation. Illegal gambling platforms and unregulated advertising on social media add to this broad ecosystem of scams, especially on platforms like Telegram, which lack strong community standards. The ease of posting illegal links or running fraudulent advertisements on such platforms increases public exposure to cybercrime, underscoring the need for digital literacy and caution.
Big pay, bigger scams
The high profitability of these operations has attracted skilled workers from across the region and beyond. Many of the leaders in this industry are foreigners, drawn by the opportunity to make money by deceiving others. Local workers, particularly young and educated individuals, are also targeted through fake job advertisements circulating on social media. These ads promise salaries of up to two million kyats for simple tasks such as typing. Those with English or Chinese language proficiency are offered even higher wages, and interpreting roles are marketed as particularly lucrative. Some individuals fall into these traps unintentionally, while others knowingly participate in the scam economy due to the attractive pay. Either way, these human resources enable scam centers to operate efficiently and expand rapidly.
Equipped with advanced technology, a pool of skilled labor, and pockets of territory lacking strong rule of law, the online scam industry is able to thrive. Its operations are highly mobile and resilient, making suppression far more difficult than other forms of cross-border crime. This reality highlights the importance of monitoring irregularities in technology sectors, tracking deceptive job markets, and scrutinizing power and internet supply routes to prevent criminal networks from using them to sustain their activities.
Myanmar’s efforts and regional cooperation
Myanmar has pledged to intensify its crackdown on online fraud and money laundering, especially within KK Park near the Thai border, framing the effort as a national responsibility. Authorities have initiated efforts to dismantle the infrastructure inside KK Park and pursue those responsible. Yet Myanmar cannot tackle this challenge alone, as many of these operations are rooted in cross-border networks that can shift locations rapidly. A regional response is essential.
In a significant step toward greater cooperation, six regional countries—China, Cambodia, Laos, Myanmar, Thailand, and Vietnam—agreed on November 14 in Kunming, China, to intensify joint action against transnational online fraud. They adopted a real-time alert system aimed at blocking, freezing, and investigating suspicious digital activity simultaneously across borders. The six Mekong–Lancang countries endorsed a comprehensive 21-point plan focused on preventing “safe havens” for scam centers, improving joint operations, expanding evidence sharing, and facilitating the repatriation of trafficked workers. This agreement marks an important milestone in confronting a rapidly evolving threat that no single nation can control on its own.
The spread of online scam operations across Southeast Asia has wide-reaching consequences that affect not only regional populations but also victims in distant parts of the globe. Unless these operations are eradicated in Southeast Asia, developing regions such as the Middle East and Africa will continue to fall victim to the expanding reach of these criminal networks. Only through regional unity, sustained political will, and coordinated action can countries dismantle these entrenched systems and protect millions from digital exploitation. –