The Myanmar Military’s Scam Empire

The Myanmar military junta’s extensive criminal enterprises are well known as a vital source of revenue that fuels its ongoing terror campaign and widespread atrocities against the people of Myanmar. Central to the proliferation of scam businesses, the junta profits by harboring criminal syndicates, militias, and affiliates to run these operations. ASEAN and the wider international community must take urgent action to address these far-reaching and exploitative transnational crimes, which threaten regional and global peace and security.

The military junta’s recent raid and demolition of the notorious KK Park cyber scam compound in Myawaddy was just a window-dressing move designed to evade the international community’s scrutiny. But no one was fooled: Multiple investigative reports confirm that the military junta remains “central to the continued existence of this transnational criminal ecosystem, and that continued significant bilateral engagement with junta [personnel] is incompatible with goals to disrupt the scam industry.”

Since the junta’s illegal coup attempt, scam centers have proliferated across Myanmar, making the country the regional epicenter of these exploitative criminal operations. Over 30 scam enclaves operate along the Myanmar-Thailand border, with nearly 100 more along the Myanmar-China border. It is common knowledge that without the involvement of the military junta and its Border Guard Forces (BGF) or affiliated militias, these scam operations could not even exist let alone possibly survive or expand to this level. At least 120,000 people are being held in these scam centers, according to the United Nations High Commissioner for Human Rights.

As of the end of 2023, the estimated annual global losses from scam-related crimes approached USD 64 billion. Mekong-based criminal syndicates alone steal over USD 43.8 billion each year—equivalent to about 40% of the combined GDP of Laos, Cambodia, and Myanmar. A significant portion of these illicit profits flow to the Myanmar military, its affiliates, and ruling elites in Cambodia and Laos.

In October 2023, scam centers in Laukkai Town, northern Shan State—which operated under junta control and its affiliated militia, the Kokang BGF—were exposed. Tens of thousands of mostly Chinese nationals were trapped in a scam compound in Laukkai and forced to work day and night. These victims suffered prison-like conditions, often abused, tortured, and even killed by the junta-controlled criminal syndicate when they failed to meet scamming targets. Despite repeated warnings from the Chinese government to crack down on these scam centers, the military junta caused deep frustration for Beijing by taking no action—to the point that China took matters into its own hands and issued arrest warrants for Kokang BGF leaders involved in scam operations.

Only after Operation 1027 in 2023—an offensive which dealt the junta its largest loss in history, launched by the Three Brotherhood Alliance: Myanmar National Democratic Alliance Army (MNDAA), Ta’ang National Liberation Army (TNLA) and Arakan Army (AA)—were the 40,000 victims of the scam centers in Laukkai rescued by resistance forces and repatriated to their respective countries. However, the junta persisted in protecting these criminal networks from arrest and prosecution, as well as facilitating their relocation to scam hubs in Myawaddy and other parts of Myanmar such as Mongyai, Hopang, and even the commercial capital of Yangon, ensuring the continued operation of their illicit businesses.

In early 2024, Deutsche Welle (DW) published a damning investigation of KK Park under the control of the Karen BGF and the junta. Many survivors of KK Park described extensive surveillance, acts of torture, and regular killings in the compound. An African survivor told DW, “We worked 17 hours a day, no complaints, no holidays, no rest,… And if we say we want to leave, they tell us that they will sell us or kill us.” “It was hell on earth… I broke completely, to the point of losing hope entirely,” Duncan Okindo, another survivor, told the Guardian. Similarly, other media reports highlight severe human rights abuses inflicted on victims trapped in the compound.

The question remains: Why do these scam operations—transnational crimes of such scale—continue unpunished? The answer lies in the impunity enjoyed by the Myanmar military and its BGF. With the continued failure and negligence of ASEAN and the wider international community, the criminal Myanmar military and its BGF are repeatedly emboldened to perpetrate these crimes and continue profiting massively through control of land, interests in real estate developments where cyber scams operate, tax collections, the provision of security, smuggling, human trafficking, and the sale of utilities.

Unless and until the Myanmar military and its affiliates are held accountable, scam operations in Myanmar will continue to thrive, threatening cybersecurity; perpetuating human trafficking, smuggling, and other severe human rights violations; and severely impacting human security, peace, and stability in the region and beyond.

How many more victims must suffer before ASEAN and the world take concrete and effective action? To truly eradicate the criminal scam operations fueling regional instability and rights abuses, the international community, particularly ASEAN, must cut any and all ties with the Myanmar military junta, hold it accountable for transnational crimes under international law, issue international arrest warrants for individual perpetrators, and effectively coordinate to impose additional targeted sanctions against the junta and its affiliates.

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[1] One year following the 1988 pro-democracy uprising, the former military junta changed the country’s name from Burma to Myanmar overnight. Progressive Voice uses the term ‘Myanmar’ in acknowledgement that most people of the country use this term. However, the deception of inclusiveness and the historical process of coercion by the former State Peace and Development Council military regime into usage of ‘Myanmar’ rather than ‘Burma’ without the consent of the people is recognized and not forgotten. Thus, under certain circumstances, ‘Burma’ is used.

Progressive Voice is a participatory, rights-based policy research and advocacy organization that was born out of Burma Partnership. Burma Partnership officially ended its work on October 10, 2016 transitioning to a rights-based policy research and advocacy organization called Progressive Voice. For further information, please see our press release “Burma Partnership Celebrates Continuing Regional Solidarity for Burma and Embraces the Work Ahead for Progressive Voice.”