Cybercrime in Finance Plagues Myanmar Amid Civil War and Weak Governance

Southeast Asia has become a hotbed of cyber scamming, with organized crime groups expanding their operations in countries like Myanmar, Cambodia, and Laos. The region’s weak governance and ongoing civil wars have created an environment conducive to the growth of these illegal activities.

A Hub for Human Trafficking and Cyber Scams

In Myanmar, where a military coup overthrew the government in 2021, the authorities have been unable to crack down on scam centers along its borders with China and Thailand. As a result, the country has become a hub for human trafficking and cyber scams, targeting citizens from countries like China, the United States, Canada, and the United Kingdom.

Scam centers are thriving along Myanmar’s borders with China and Thailand
Human trafficking and cyber scams target citizens from various countries

The Military Junta’s Tolerance of Cybercrime

According to experts, the Myanmar military junta has tolerated and profited from the scam industry, allowing it to thrive despite efforts by Chinese law enforcement to pressure local ethnic militias to hand over Chinese nationals and close down the centers.

The military junta has allowed cybercrime to thrive in the country
Efforts by Chinese law enforcement have been met with resistance

Joint Attack by Ethnic Insurgent Groups

The situation has become so dire that three ethnic insurgent groups recently launched a joint attack on the Myanmar military in northeastern Shan State, accusing the junta of tolerating and profiting from human trafficking and scamming. The attack was seen as a tacit approval by China to allow temporary instability on its border if it stops the human trafficking and scamming of its citizens.

Ethnic insurgent groups launched a joint attack on the Myanmar military
The attack was seen as a signal to China to take action against human trafficking and cybercrime

International Efforts Against Cyber Scams

The United States has taken action against the scams, issuing coordinated sanctions with Canada and the UK in December 2023 on individuals and entities involved in the illegal activities. US authorities have also seized assets of those profiting from crypto scams, disrupting the financial infrastructure of the networks.

The US, Canada, and the UK issued coordinated sanctions on individuals and entities involved in cybercrime
US authorities seized assets of those profiting from crypto scams

Challenges in Combatting Cyber Scams

Despite these efforts, experts warn that the scam operations are highly mobile and can easily evade a crackdown by dispersing their operations across borders. “Unfortunately, the law enforcement responses have been very much contained within national boundaries,” says Jason Tower, country director for Myanmar at the United States Institute of Peace.

Scam operations are highly mobile and can easily evade a crackdown
Law enforcement responses have been limited to national boundaries

The Need for International Collaboration

As China continues its efforts to protect its own citizens from being scammed, experts say that the operations will likely seek even more victims in the West. Washington will need to ramp up its international collaboration, including raising this issue with China, to effectively protect US citizens from these scams in the near future.

International collaboration is necessary to combat cybercrime
The US needs to work with China and other countries to protect its citizens from cyber scams