Beijing's pressure forces scam centres from Myanmar into Thailand
Chinese citizens dominate both sides of the sprawling fraud industry that has operated from Myanmar's borderlands — as operators and as victims — but the crackdown Beijing forced on its neighbour is now pushing criminal networks directly onto Thai soil.
Thai police in June raided a call centre operation in Chiang Mai, arresting 11 Chinese nationals and 4 Myanmar citizens who had relocated their scam activities across the border. Three more Chinese suspects were apprehended in Bangkok in January after fleeing Myanmar-based gangs. The Thailand Royal Police Regional Division 5 handled both operations.
Scale of the industry
The United Nations Office on Drugs and Crime estimates that transnational criminal groups in the region generate nearly US$40,000M annually from online fraud, gambling and related activities. At their peak, these centres employed an estimated 100,000 Chinese workers alone, many trafficked and held against their will, according to the United Nations.
As of June, more than 5,300 people remained trapped in scam centres near the Thailand-Myanmar border. The group includes approximately 1,600 Chinese nationals, about 200 Myanmar citizens, and people from more than 60 other countries — including roughly 20 Thai nationals, as well as citizens of the Philippines, Taiwan, Malaysia, Brazil, Kenya, Russia, Rwanda, Uganda and Zimbabwe.
How the centres operate
The criminal compounds cluster in border towns such as Myawaddy, Shwe Kokko and KK Park, directly across from Thailand. Operators often disguise them as industrial parks or business zones.
Gangs run romance scams and investment fraud — particularly so-called "pig butchering" schemes and cryptocurrency scams — targeting victims worldwide. Workers use social media applications and messaging platforms to build fake relationships with targets before convincing them to invest in fraudulent schemes.
Those who fail to meet targets face physical abuse, torture or electric shocks, according to survivor testimony collected by human rights organisations. The centres rely on satellite internet services such as Starlink to maintain cross-border operations.
The Karen National Army — formerly known as the Border Guard Force — controls much of the territory where these centres operate. Its leader, Brigadier General Saw Chit Thu, and his subordinates have allowed the compounds to flourish in exchange for payments and investments.
"Grey capital" from Chinese criminal networks plays a central role. Figures such as She Zhikiang, a Chinese-born Cambodian national, have acted as intermediaries, linking investors with the Karen National Army and establishing joint ventures such as Myanmar Yatai and YATAI IHG.
Beijing's blunt diplomacy
China lost patience with Myanmar's failure to curb the industry after years of mounting victim numbers. Beijing responded by quietly supporting ethnic armed groups in Myanmar's northeast, contributing to significant battlefield losses for the Myanmar military — a signal of its displeasure with the junta's inaction.
The pressure produced results. Myanmar authorities transferred more than 53,000 suspects to China in December 2024 alone. Myanmar handed over another 920 Chinese nationals in April 2025, and by October 2025, the military government reported it had arrested over 10,000 foreigners connected to scam operations in nine months, with about 9,340 already repatriated.
Chinese public security organs in July 2025 charged 21 key members of the telecommunications fraud gangs operating in northern Myanmar with offences including fraud, murder and drug trafficking.
Security forces from Myanmar have also led Chinese and Thai working groups to inspect and demolish high-rise buildings that once served as gang headquarters in KK Park and Shwe Kokko, flattening compounds to prevent reoccupation.
Thailand's frontline role
Thailand has taken a lead in dismantling the industry. In 2025, Thai authorities coordinated efforts that rescued approximately 5,000 people from Myawaddy-area centres.
Thai authorities have also moved to cut utilities. Officials suspended electricity supplied by company SMTY to Shwe Kokko, cutting power, fuel and internet access to some centres.
The US Treasury Department's Office of Foreign Assets Control has sanctioned organisations and individuals connected to the scam centres in Shwe Kokko and nearby areas. Those sanctioned face travel bans to the United States and prohibitions on financial transactions with American companies. US law enforcement has also seized digital assets worth about US$9M linked to the operations.
Uneasy future
Myanmar's military government has proposed new legislation that could impose the death penalty on those who use violence to force victims into cybercrime work, and life imprisonment for scam centre operators. The bill aims to repair the country's reputation as a cybercrime hub.
Chinese, Thai and Myanmar authorities continue joint operations, but the criminal networks have proven adaptable — relocating operations to Cambodia, Laos, Dubai and now Thailand itself.
For residents of northern Thailand, the presence of relocated scam centres means heightened risk of fraud attempts originating from within the country, and a greater likelihood of encountering trafficking victims who managed to escape.
Thailand-based workers should remain wary of unsolicited investment contacts and job offers promising high wages for remote work, particularly those requiring relocation to border areas or neighbouring countries.
