Episode #432: Myanmar researcher Lin Jin Fu investigates the rise of scam compounds that blend human trafficking, digital fraud, and organized crime. His study, Scam haven: Responding to surging cyber crime and human trafficking in Myanmar, traces their expansion from Chinese “scam houses” into a transnational industry stretching across Myanmar, Cambodia, and Laos. Originally rooted in China’s underground economies, these groups migrated outward as Beijing cracked down and the pandemic restricted domestic activity. They flourished in lawless borderlands such as the Golden Triangle and northern Shan State, where weak governance allowed them to create fortified compounds that combine physical captivity with online deception.

Scam centers now anchor wider illicit economies— drugs, gambling, black-market banking, and prostitution— worth at least $37 billion a year. In 2023, the Three Brotherhood Alliance, with apparent Chinese backing, attacked major compounds in Laukkai during Operation 1027, rescuing trafficked Chinese nationals and handing over several ringleaders who were later sentenced to death. At the same time, Beijing launched a domestic campaign, flooding WeChat and Weibo daily with anti-fraud messages. Yet the system persists. Frightened operators briefly suspended work elsewhere, then reopened on the condition that they avoid targeting Chinese citizens. Every compound, Lin Jin Fu explains, survives by securing protection from an armed host—usually the junta or allied Border Guard Forces— while some ethnic armies tolerate or tax them.

These networks adapt easily. Big bosses flee by helicopter; smaller scams need only laptops, generators, and internet. The old “pig-butchering” crypto fraud now employees sophisticated AItools, and online-gambling scams targeting countries across South America dominate Tachileik. Sadly, for many impoverished young Burmese, scam centers are the only escape from conscription and joblessness. Meanwhile, inside the compounds, workers endure coercion, sexual abuse, and debt bondage. Surrounding towns boom briefly, then collapse into ghost cities once crackdowns hit.

Lin Jin Fu warns that for scam centers to fully cease operations across Myanmar, the military junta has to go. Beyond that, he emphasizes that absent legal migration routes and alternative employment, the industry will continue to endure. “For drugs, people had an alternative— grow coffee instead of poppy,” he says. “For scams, what is the alternative?”