Fraud factories in Myanmar blamed for scamming Chinese and American victims out of billions of dollars remain operational and have expanded, an AFP investigation has found. Satellite imagery and drone footage show rapid construction at heavily guarded compounds near Myawaddy on the Thailand-Myanmar border, many appearing to use Elon Musk’s Starlink internet service on a large scale.
Experts say most of the centers are run by Chinese-led syndicates in coordination with Myanmar militias operating in the lawless Golden Triangle. They are notorious for romance scams and high-pressure “pig butchering” investment frauds. Victims are lured online, while workers are trafficked and subjected to beatings, forced labor, and psychological abuse.
Despite international pressure from China, Thailand, and Myanmar, which led to a February crackdown freeing around 7,000 workers, authorities estimate that up to 100,000 people may still be trapped in the sprawling mini-city compounds. Satellite imagery shows that construction resumed weeks after the initial raids, with some roofs now covered by nearly 80 Starlink dishes.
The U.S. Treasury Department reported that Americans lost an estimated $10 billion last year to these operations, a 66% increase over 12 months. California prosecutors warned Starlink in July 2024 that its satellite network was being exploited by scammers, but the company has not responded. U.S. Congress members, including Senator Maggie Hassan, have raised concerns, prompting an ongoing investigation into Starlink’s involvement.
AFP traced the story of “Sun,” a Chinese national trafficked into multiple compounds, who described being beaten, sold between centers, and forced to participate in online scams targeting Americans. The centers provide detailed scripts for workers, instructing them on how to lure victims, sometimes adopting false personas to build trust before passing targets to more skilled operators.
The Golden Triangle region, where Myanmar, Thailand, China, and Laos meet, has long been a hub for illegal activity including drug trafficking and money laundering, which experts say has allowed these scam operations to flourish. Militia groups affiliated with Myanmar’s junta protect the centers, which operate in a permissive environment despite occasional clashes between rival groups.
Attempts to escape the compounds often involve paying ransoms through underground networks, though victims’ families frequently fall prey to additional scams. Many rescued workers face social stigma in China and limited government support.
Experts warn that while crackdowns temporarily disrupt operations, the underlying problem persists. “As long as the military junta enables and fuels this industry, it will continue to be a game of cat and mouse,” said Nathan Ruser of the Australian Strategic Policy Institute. Cybercrime investigator Erin West added: “A generation’s worth of wealth is being stolen… It is way too big now, like an enemy state.”
