Cyber scam compounds have expanded into new areas of Myanmar’s Shan State, following a crackdown on operations near the Myanmar-China border in February. These illegal activities have been established in four townships under both regime and ethnic armed group control in Shan State.
“There are more than three major scam centers with hundreds of employees,” a resident of Tangyan Township, located 83 miles (134 km) southeast of Lashio in northern Shan State, told DVB on the condition of anonymity. Residents claim these operations are protected by regime authorities, including soldiers, police, and administrators.
Cyber scam compounds were set up in Tangyan in 2023 after a crackdown in Panghsang (Pangkham), the capital of Wa State – officially known as the Wa Self-Administered Division – an autonomous zone administered by the United Wa State Army (UWSA) along Myanmar’s borders with China and Thailand.
“They’re all involved. It’s devastating our youth—some have even died from drug abuse,” a Tangyan resident told DVB.
On July 11, the UWSA deployed thousands of its troops to Tangyan “to prevent the spread of ongoing conflicts” and to protect its interests in northern Shan State.
Jason Tower, the Myanmar director for the United States Institute of Peace (USIP), told DVB that cyber scam compounds in Tangyan are under the protection of the UWSA.
“Tangyan is notable because it’s a township where the Myanmar military agreed to the UWSA coming in. There’s essentially a form of joint governance going on between the military and its remaining forces in Tangyan and the UWSA,” said Tower, who has been monitoring the spread of cyber scams across Myanmar.
Cyber scam compounds have also relocated to areas under the control of the pro-military Mong Ha militia in Mongyai Township, which is located around 56 miles (90 km) south of Lashio. Mongyai town has been occupied by the Shan State Progress Party (SSPP/SSA) since July.
“When the scam sites were being cracked down on the Chinese border, a group moved into the territory of the Mong Ha people’s militia,” a Mongyai resident told DVB on the condition of anonymity. “They’ve set up operations near Man Kyu village. They employ about 3,000 people.”
The regime in Naypyidaw reestablished its Northeastern Regional Military Command (RMC) headquarters in Mongyai after the Brotherhood Alliance, which includes the Myanmar National Democratic Alliance Army (MNDAA), the Ta’ang National Liberation Army (TNLA), and the Arakan Army (AA), took control of Lashio on Aug. 3.
“The cyber scam sites are operating around 25 miles [40 km] from Mongyai town. They coordinated with [Myanma Posts and Telecommunications] to extend fiber optic lines there for internet access,” another Mongyai resident told DVB.
Scam compounds have reportedly been set up in the village of Wanhai, which is 43 miles (69 km) south of Mongyai in Kyethi Township. Wanhai serves as the headquarters of the SSPP, which is an ally of the UWSA.
Chinese cyber scam operations have also been established in Laihka Township of southern Shan State, which is located around 89 miles (143 km) east of the Shan State capital Taunggyi.
The cyber scam compounds are guarded by pro-military militias. A Laihka resident told DVB that the its workers have caused the price of essential commodities to surge in the township.
Cyber scams have expanded in Myanmar since the 2021 military coup along its 1,370 mile (2,204 km) border with China, according to the U.N.
Relations between Beijing and Naypyidaw have been strained as many Chinese nationals were trafficked and forced to work at the compounds in areas controlled by militias loyal to the regime.
Many Myanmar-China political analysts believe that Beijing gave its tacit approval to the Brotherhood Alliance to launch Operation 1027 on Oct. 27, 2023 over Naypyidaw’s failure to crack down on cyber scams along the border.
Min Thein, regime ambassador to Austria, claimed during the 12th U.N. Convention against Transnational Organized Crime held in Vienna earlier this month that Naypyidaw has taken action to crackdown on cyber scams in Myanmar.
But according to a report released last month by USIP, operations in Myanmar have accelerated over the past year.
“What’s interesting here is that we’re seeing trends that kind of parallel what has happened with narcotics more broadly in that China asserts pressure immediately on its border [in northern Shan]. Other actors respond by shifting a lot of that production to the south,” added Tower.
At least 120,000 people across the country may be held in areas where they are forced to carry out online scams, added the U.N.
