A new study published in the journal "Academia Against Poverty" delves into the operations of Myanmar's cybercrime syndicates, revealing how scams, money laundering, and human trafficking are deeply embedded in the border areas of Myanmar and the underground gambling networks, forming a vast transnational illegal system.
The study, conducted by Thant Thura Zan from Kyoto University and Soe Thaw Tar Kyaw Min from the University of Eberswalde in Germany, paints a grim picture of how Myanmar has evolved into a hub for digital scams targeting victims worldwide, highlighting the close connection between its illegal gambling industry and cross-border crime.
The research specifically focuses on a phenomenon known as "Kyar Phyant" (meaning "scam" in Burmese), which has become synonymous with online gambling scams, romance scams, phishing attacks, and fake recruitment. These activities often masquerade as legitimate platforms but are actually controlled by criminal groups, heavily relying on forced labor and human trafficking, with victims mostly from neighboring Southeast Asian countries.
Since the military coup in 2021, Myanmar's political chaos has provided fertile ground for these criminal activities. Local armed groups and militias provide shelter for the scam networks and collect "protection fees," turning some border areas into lawless "grey zones," becoming major bases for cybercrime.
In the northern part of Shan State near the Chinese border, the Kokang Self-Administered Zone has become a hotspot for mixed real and fake casinos. The local four major families—Bai, Ming, Wei, Liao—have close ties with the Myanmar military, leveraging their influence to carry out real estate and cryptocurrency-related scams and money laundering operations.
Meanwhile, the report notes that places like Ruigou Valley and KK Park on the Thai-Myanmar border are also packaged as so-called "new city projects," but are actually large-scale online scam parks, involving deep collusion between local border defense forces, foreign capital, and corrupt forces. These "development zones" not only attract funds but also become bases for transnational crime.
According to the investigation, a large number of "employees" are deceived by false advertisements or forced to go to the parks to engage in scamming activities, often accompanied by abuse, torture, and even murder, with related allegations frequently emerging.
Social platforms including Facebook and Telegram play a key role in these scams. Scam information is embedded in virus videos or movie sharing groups, while romance scams build trust through long-term communication. Once the target is hooked, whether addicted to gambling or trapped in fake love, they enter an economic extortion trap. Sometimes, scammers also steal user data and threaten to contact family and friends for extortion.
Losses exceed $75 billion
Reports indicate that from 2020 to 2024, Southeast Asia's online scam networks alone caused over $75 billion in economic losses.
Combining blockchain analysis and data from the American anti-slavery organization, a Chinese company operating in KK Park alone implemented over $100 million in scams through USDT cryptocurrency wallets. The study estimates that currently about 100,000 people in Myanmar are forced to participate in such criminal activities, many of whom are trafficked or illegally detained.
Despite efforts to combat these activities, the results are still limited. Since 2023, China has repatriated 51,000 of its citizens involved in Myanmar's scam activities and arrested some key criminal leaders in the Kokang area. At the end of 2023, an anti-government armed group called the "Three Brothers Alliance" launched the "1027 Operation" targeting scam parks and their military protectors. However, these forces quickly established new bases in places like Daqi and continued operations.
Zan and Kyaw Min place these phenomena within a broader context of structural issues, including poverty, regulatory gaps, technology misuse, and systemic corruption. They point out that in the military-led political situation in Myanmar, the law enforcement system is either absent or colludes with criminal groups, even profiting from them.
At the international level, the study calls for more targeted collaborative actions, including implementing targeted economic sanctions, conducting judicial cooperation under international mechanisms such as the United Nations Convention against Transnational Organized Crime, and strengthening the regulation of virtual assets and cross-border finance. It also calls for raising public awareness of scams, enhancing regional police cooperation, and urging digital platforms and fintech companies to fulfill their responsibilities.
The authors warn that unless the current regime in Myanmar collapses, the hope of dismantling its sheltered scam networks is slim. The shadow of Kyar Phyant will continue to spread globally, and the cost will ultimately be borne by innocent victims around the world.
