Cybercrime in Myanmar’s Finance Sector: A Growing Concern

Southeast Asia has become a hub for global cybercrime, with organized crime groups operating scam centers across the region, including in Myanmar. These criminal enterprises are targeting victims from countries worldwide, and the authorities’ efforts to crack down on the operations have been hampered by the transnational nature of the problem.

The Scale of the Issue

• According to experts, China is taking steps to protect its citizens from being scammed, but the criminal enterprises are highly mobile and can easily evade a crackdown by dispersing their operations across borders.
• The United States has also taken action against individuals and entities involved in the scams, including seizing assets worth millions of dollars.

Myanmar’s Involvement

• The Myanmar military junta has been accused of tolerating and profiting from the scam centers along its border with China.
• In October 2023, three ethnic insurgent groups launched an attack on the Myanmar military, claiming they would eliminate scam centers in the region.

Global Efforts to Combat Cybercrime

• China’s efforts to protect its citizens have led to a significant reduction in the number of Chinese nationals being scammed, but experts warn 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.

Sanctions and Enforcement

• The United States has issued coordinated sanctions with Canada and the UK on individuals and entities involved in the scams.
• US authorities have taken action in some individual cases by seizing assets of those profiting from crypto scams.

Addressing Human Trafficking

• Experts say that cutting back US assistance is one way Washington can address continued human trafficking.
• The US Department of State’s latest Trafficking in Persons report documented cyber scam abuses in Myanmar, serving as evidence for the United States to withhold non-humanitarian foreign aid from countries complicit in human trafficking.

The Future of Scam Operations in Myanmar

• The future of scam operations in Myanmar is uncertain, but experts warn that these criminal enterprises are highly mobile and can easily elude a crackdown by dispersing their operations across borders.
• The authorities will need to work together internationally to effectively protect citizens from these scams.