Myanmar’s military has raided a major online scam hub on the Thai border, arresting 346 people and seizing nearly 10,000 mobile phones, in a high-profile crackdown on black-market operations. The raid targeted Shwe Kokko, a gambling and fraud centre, according to state-run The Global New Light of Myanmar.
The military blamed armed opposition groups for allowing such operations to flourish under their protection but said it took action after regaining control of the territory. Shwe Kokko has long been linked to the Yatai company, founded by Chinese-Cambodian alleged racketeer She Zhijiang, who was arrested in Thailand in 2022 and extradited to China last week to face charges related to online gambling and fraud. Yatai and She were previously sanctioned by the US and UK.
Border regions connecting Myanmar, Thailand, Laos, and Cambodia have become hubs for online fraud since the COVID-19 pandemic, generating billions of dollars and involving hundreds of thousands of people, many of whom are trafficked and forced to work in these scam compounds, according to the United Nations.
Experts suggest that Myanmar’s military crackdown is partly influenced by pressure from China, a key ally. While these operations appear to be part of a propaganda effort to showcase action against scams, some analysts argue the raids allow the military government to appease Beijing without significantly harming the profits that enrich its militia allies.
This recent operation follows similar large-scale raids, including the arrest of more than 2,000 people in October at KK Park, another notorious scam centre on the Thai border. In September, the US Treasury sanctioned over 20 companies and individuals in Cambodia and Myanmar for their alleged roles in online scams.
As online fraud continues to thrive in loosely governed borderlands, Myanmar’s military faces growing scrutiny over its role in regulating or at times overlooking these lucrative operations.
