Myanmar has been the subject of damaging news headlines recently, both domestically and in neighboring countries, relating to scam centers. Two cities—Laukkai, capital of the Kokang Self-Administered Zone in northern Shan State, and Myawaddy, a town in Karen State near the Thai border—have emerged as focal points in this matter. Studies and media reports indicate that these online scamming operations are owned and operated primarily by criminal networks originating in China.
While Chinese criminals are not behind all global scamming operations, they have likely caused some of the most significant financial losses, affecting millions of people worldwide. In 2021, the US Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) received 847,376 reports of losses amounting to US$6.9 billion in the US alone. Reported scam losses in Asia amount to approximately $688.42 billion, according to the Asia Scam Report 2024 by the Global Anti-Scam Alliance (GASA).
Myanmar’s military government, which calls itself the State Administration Council (SAC), has handled the matter in a way that undermines national sovereignty and erodes the rule of law—the very values it claims to uphold and protect.
Sheer number of offenders
In the wake of Operation 1027, a major military offensive launched against regime forces by the Brotherhood Alliance of ethnic armed organizations in late 2023, over 40,000 Chinese nationals in Kokang, northern Shan State were arrested and repatriated. After the crackdown in Kokang, the scammers relocated to Myawaddy. Authorities there arrested 621 people in February and 1,430 people in the first 10 days of the following month in preparation for expatriation to China through Thailand. AP reported on Feb. 27 that over 7,000 people were being held in Myawaddy pending repatriation. These people are from 29 countries but over half of them are from China. The SAC simply handed these criminal suspects over to China and Thailand.
The presence of these Chinese and many other foreign nationals who illegally entered Myanmar with the intention of committing unlawful activities is already an insult, but the SAC’s actions further undermine the country’s sovereignty, rule of law and reputation. The SAC’s approach signals that anyone can enter and exit Myanmar freely and engage in any activity without consequences.
The correct approach would be to arrest and try offenders (including Myanmar suspects) in Myanmar courts and let them first finish their prison sentences, because their illegal entry into Myanmar clearly violates its immigration law, while their online scamming operations break the Telecommunications Law, among others. Only after serving their prison sentences (or paying fines) in Myanmar, should they be extradited to their home countries to face other charges there. The SAC’s action amounts to these criminals facing reduced punishment or receiving undue leniency.
Foreign criminals forgiven, Myanmar citizens repressed
By not prosecuting them, the junta has shown great mercy to tens of thousands of foreign intruders who intentionally violated its laws. At the same time, it has been brutally crushing its own well-intentioned citizens. Following the military coup in February 2021, the people of Myanmar peacefully demanded the return of democracy for the good of the country. However, unlike the leniency it showed toward foreigners who illegally entered and damaged the country’s reputation and rule of law, the SAC has shown no mercy to its own citizens for expressing well-intentioned opinions.
The SAC arrested a total of 28,779 people—with 22,001 sentenced and still in detention—between Feb. 1, 2021 and March 10, 2025, according to the Assistance Association for Political Prisoners (Burma). Between February 2021 and June 2024, the SAC arrested 208 journalists, 56 of whom are still in prison, sentencing 78 journalists to a combined 375 years. Of the convicted journalists, 21 percent received prison sentences of 10 to 20 years, according to the International Center for Not-For-Profit Law.
Contrast with foreign governments
Unlike Myanmar authorities, foreign governments are seemingly more protective of their citizens in any situation, much like parents who unconditionally safeguard their children. For example, the Thai government is reportedly collaborating with foreign authorities and embassies to expedite the repatriation of citizens rescued from scam compounds along the Thai-Myanmar border.
Foreign governments rush to expatriate their citizens from Myanmar. They clearly do not seem to think that their citizens should face trial and prison in Myanmar for their illegal entry, let alone face possible charges relating to cybercrime.
Foreign governments seem to prefer trying their citizens in their own countries rather than allowing them to face trial in Myanmar courts. This is an indication that they care about the wellbeing of their citizens, even those involved in unlawful activities.
Neighbors profiting
Given the turbulent situation in Myanmar, it is true that Myanmar citizens go abroad both legally and illegally in search of work, but these migrants do not seek to engage in serious criminal activity. It is also true that many go abroad legally but choose to work without proper documentation. Consequently, when they get caught, they face prison sentences and are shown no lenience for illegal entry, working illegally, or both. Only after serving their prison sentence are they deported.
This author met a group of women from a village in Kachin State on the border with China who spent a month in a Chinese detention center for entering the country illegally. The incident occurred in January 2020 after the women went to nearby mountains in search of vegetables and herbs, crossing into China without realizing it. Soon, a group of Chinese soldiers showed up and detained them. They were released only after one month of imprisonment.
Ironically, Myanmar’s neighboring countries seem unwilling to let their citizens who illegally enter Myanmar for the purpose of committing serious crimes stand trial in Myanmar’s courts. Instead, they exploit Myanmar’s temporary instability, as evidenced by their double standards in pursuing justice.
It is a sad fact that Myanmar authorities including the SAC do not seem to care about the welfare of their citizens abroad. The SAC regime forces migrant workers to send a quarter of their earnings home through official banking channels—at the official exchange rate, which is far lower than the market rate. However, the SAC ignores the fact that workers abroad frequently face exploitation by employers, including unlawful dismissal, unfair wages, withheld salaries, and unsafe working conditions. In short, exploitation by neighboring states is possible because of the self-interest and incompetence of the Myanmar authorities.
Underappreciated efforts
When it comes fighting telecom fraud, it is important to note that anti-online scamming operations in Myanmar gained momentum in 2023 with the launch of Operation 1027, which forced the scammers to relocate from northern Shan to Myawaddy.
The ethnic armed groups—i.e., the Border Guard Force (BGF), the Democratic Karen Buddhist Army (DKBA) and the Karen National Union (KNU)—in control of territories that host scam operations were forced by the SAC, Thailand and China to crack down on them. They were also accused of being involved, in one way or another, in this scamming business. The SAC is also accused of taking an annual fee from the scamming operations.
Nonetheless, it is fair to note that on the Myanmar side, the Brotherhood Alliance, BGF, DKBA, KNU and SAC are all also involved—amid pressure and internal armed conflict—in cracking down on the online scam operations. However, Myanmar’s efforts are seemingly underappreciated.
In the view of Chinese state media outlet Global Times, Myanmar ranks behind China and Thailand when it comes to efforts to clamp down on online swindling. In its words, the scam crackdown represents “A remarkable achievement in multinational law-enforcement efforts between China, Thailand and Myanmar to crack down on telecom and cyber fraud”—with Myanmar relegated to third on the list.
This is mainly due to the SAC’s self-interest and incompetence. As the SAC is fighting on multiple fronts for its survival, it does not resist foreign governments’ demands to speed up the repatriation of their citizens. In exchange, the SAC seems to be hoping for understanding or sympathy or help from the foreign governments in subduing resistance groups. This self-interest clouds the SAC’s judgment and competence.
Collective failure
These scam centers have obviously caused great financial losses and damaged the emotional wellbeing of millions of people. Meanwhile, it is important to recognize that actors in Myanmar (both the SAC and the resistance groups) are not solely responsible for combating this online swindling. It is certainly not fair to blame Myanmar alone and label it as the fraud center. The rise of scam operations is the result of a collective failure; no one country alone bears sole responsibility.
These Chinese and other foreign nationals entered Myanmar illegally, most likely across the Chinese, Laotian and Thai borders. Thus, the first responsibility rests with the Chinese authorities because they failed to detect and arrest these criminal suspects at airports and border crossing checkpoints when they left China.
Furthermore, the victims are from many countries; this means the scammers rely on the banking systems of many countries, including those of Myanmar’s neighboring states. The Asia Scam Report 2024 confirms that bank transfers remain the most common payment method used in scamming, while electronic transfers and e-wallets are also popular.
Moreover, these operations are only possible due to corruption on all sides, including within Myanmar, as previously mentioned. There are suspicions that high-ranking Thai officials are involved in these online scamming activities. Thus, the governments of the scam victims share responsibility for their failure to detect and freeze criminal transactions and banking activities.
Zung Ring is a social worker and independent political analyst based in Myanmar.
