Myanmar declares zero-tolerance on cyberscams as crackdown widens, but doubts persist

Myanmar’s military regime announced a zero-tolerance policy toward cyberscams and launched a sweeping crackdown on border-area scam hubs, signaling what officials described as a turning point in a global criminal industry that has trafficked millions of dollars and thousands of workers around the world. The government said it began by razing the KK Park compound along the Thai border, a symbol of impunity in online fraud operations that investigators have linked to transnational networks.

State media reported that the crackdown intensified through November and December, with authorities saying 413 KK Park buildings had been demolished by Dec. 13 and that the remaining 222 would be cleared as well. The government published images of wreckage and soldiers with seized Starlink terminals as part of its narrative of a definitive crackdown. Detailed analyses by civil-society groups and researchers, however, have shown a more nuanced picture, including a spillover effect where workers fled to other scam sites or abroad, raising questions about whether the action will have lasting impact.

Even as demolition continues, observers say it is too soon to declare victory. Interviews with current and former workers indicate that disruption in one site often prompts relocation rather than a reduction in criminal activity. The crackdown comes as international scrutiny has mounted over the military authorities’ rule, including sanctions and a push to prosecute those behind transnational scams that the FBI has characterized as costly to the United States. Experts note that the scale of the industry, which uses borderlands controlled by insurgent groups for cover, makes it difficult to stamp out quickly.

Analysts have tracked a pattern of continued growth in scam infrastructure even after earlier crackdowns. Data reviewed by the Washington-based group C4ADS show that of 21 known scam compounds in Myawaddy Township, 14 exhibited construction or expansion since January, including KK Park. Some facilities began adding solar panels, a step that could help operators operate with greater energy independence from nearby Thailand, where authorities sometimes cut power to disrupt operations.

"This continued growth of scam compounds is emblematic of the junta’s inability to rein in the industry within Myanmar," said Michael Di Girolamo, a C4ADS analyst who focuses on cybercrime. He noted that the people who once led demolitions at KK Park appeared to have profited from scams over the years, complicating the prospect of a sustained crackdown.

The KK Park raid in October was followed by a broader set of actions, including raids on another well-known site, Shwe Kokko, and the engagement of international partners in pressuring Myanmar to curb the industry. SpaceX reported cutting off access to more than 2,500 Starlink units in Myanmar, a move that disrupted operations at several scam hubs that had relied on the satellite internet service. Meta also said it had removed about 2,000 Facebook accounts tied to scam activity in the country.

Despite the government’s push, the crackdown has had uneven effects on the labor force. Thai authorities reported that about 1,500 workers who had been employed at KK Park were processed out through official channels, but tens of thousands of laborers are believed to remain unaccounted for. Some workers linked to KK Park told AP they had relocated to other compounds, sometimes with their bosses, and that recruitment for new scam operations remained active on Telegram and other messaging platforms. A Filipino worker described a mass exodus of personnel who fled KK Park, with some heading to Cambodia, Mauritius and Africa; others stayed behind while the bosses shifted operations to new sites.

The Karen Border Guard Force and allied militias have historically protected many of the border-area facilities, complicating enforcement and accountability. The Karen National Union, a rebel group opposed to the Myanmar military government, conducted its own raid on a target known as Shunda Park in November, seizing hundreds of mobile devices, bank cards and computers and turning them over to Thai authorities for investigation. The episode underscored how the line between state-led action and insurgent control can blur in border zones where criminal networks thrive.

As international pressure intensifies, Myanmar has touted the crackdown as a long-term effort to eradicate scam activities from their roots. The government says the demolition at KK Park and raids at additional sites are steps toward dismantling the broader industry and preventing reconstitution. State media coverage in December framed cyberscams as the work of foreign networks operating in lawless borderlands and pledged ongoing measures to ensure that criminal activity never returns.

Observers caution that even dramatic imagery of destroyed buildings does not necessarily translate into the end of the business. The AP’s review of satellite imagery and interviews suggests that many facilities remain intact or are being rebuilt on different sites, and that the crime’s leadership may avoid public exposure by moving assets and personnel across borders. Some analysts argue that a genuine crackdown would require arresting leaders, seizing illicit assets, and dismantling the wealth networks that sustain the operations, not merely destroying storefront compounds.

Ethical and operational gaps complicate the picture as well: some of the workers rescued from certain compounds reported continued abuse or exploitation en route to safer locations, and others face risks of retaliation if they attempt to leave for safer areas. The broader fight against cyberscams will likely depend on sustained international cooperation, targeted prosecutions, and ongoing monitoring of borderland networks that have proven adept at adapting to enforcement pressures.

The Myanmar government’s reiterations of a zero-tolerance stance reflect a strategic effort to present a narrative of control ahead of national elections widely criticized by observers as a means to legitimize the coup regime. In practice, the future of KK Park and similar facilities remains uncertain. Analysts note that the scale of the industry — which the FBI has estimated cost Americans more than $16 billion last year — means suppression will require persistent, coordinated action among Myanmar’s neighbors and the international community. As authorities continue to justify their actions with numbers and demonstrations of wreckage, the question remains whether the underlying criminal networks will be dismantled, or merely displaced to new sites along the region’s porous borders.