Online scam and gambling syndicates in Myanmar are relocating to Payathonzu in Kyainseikgyi Township near the Thai border, sources told The Irrawaddy.
Since early July, online fraud gangs have been moving operations to Payathonzu, Falu, Kyauk Khet, Min Let Pan and Waw Lay near Myawaddy, Myanmar’s busiest border town with Thailand. Payathonzu is about five hours’ drive south of Myawaddy.
Gangs have moved from the Shwe Kokko criminal hub in Myawaddy Township and rents have doubled, according to Payathonzu residents.
Some gangs have rented land from armed organizations near Mount Dhamma Giri above Payathonzu to run casinos.
Armed organizations such as the New Mon State Party and Democratic Karen Benevolent Army (DKBA), the pro-junta Karen State Border Guard Force (BGF) and the junta’s Infantry Battalion 97 are based in Payathonzu.
The town was shelled after the 2021 coup amid fighting with resistance groups.
The DKBA has mostly provided the administration and security for Payathonzu since mid-2023 with junta forces largely confined to their base, residents said.
Karen National Union Brigade 6 claims Payathonzu is within its territory.
The DKBA reportedly also controls Waw Lay and Kyauk Khet and the DKBA and BGF control Falu and Min Let Pan.
Residents said Mae Htaw Talay village south of Myawaddy has six online scam operations with the BGF providing security.
The BGF led by Saw Chit Thu provides security for Shwe Kokko town, a notorious hub of drug and human trafficking, online gambling and scamming.
Chinese triad gangs and other criminals ran casinos and fraud operations in Shwe Kokko before the 2021 coup and have since expanded activities to KK Park and Kyauk Khet village.
Following Chinese pressure, the BGF in May warned foreign scam gangs in Myawaddy Township to leave by October 31 or face prosecution.
In August it issued another warning saying that all the online businesses and staff in Shwe Kokko must relocate by September 20.
Gambling operations are still operating in Shwe Kokko, said residents.
