Myanmar’s military has launched a sweeping crackdown on one of the country’s most notorious online scam hubs, arresting nearly 350 foreign nationals and seizing thousands of mobile devices used in cyber-fraud operations. The large-scale raid unfolded along the Myanmar-Thailand border, a region long recognized as a hotspot for criminal syndicates involved in gambling scams, human trafficking, and digital fraud.

Crackdown on Shwe Kokko: A Major Online Scam Center

According to state-run The Global New Light of Myanmar, military forces descended on the infamous Shwe Kokko compound in Myawaddy Township early Tuesday morning, targeting what authorities described as a large-scale gambling and cybercrime operation.

During the raid, officials detained 346 foreign nationals and seized nearly 10,000 mobile phones allegedly used to run online gambling and scam networks.

The Myanmar military claims the operation was necessary after it regained territorial control from armed ethnic opposition groups, whom officials accuse of enabling scam centers to operate under their protection.

Connections to Notorious Crime Figures

Authorities also linked the Shwe Kokko compound to the Yatai Group, a business associated with Chinese-Cambodian businessman She Zhijiang, who has faced international scrutiny for alleged involvement in illegal gambling and cyber-fraud networks across Southeast Asia.

She, previously sanctioned by the United States and the United Kingdom, was arrested in Thailand in 2022 and extradited to China earlier this month to face charges related to cross-border criminal activities.

Why Scam Centers Flourish in Myanmar’s Borderlands

Since the COVID-19 pandemic, Southeast Asia’s border regions — including Myanmar, Thailand, Laos, and Cambodia — have become global epicenters for online fraud. Weak governance, armed conflicts, and economic instability have created fertile conditions for scam syndicates to thrive.

The United Nations estimates that thousands of trafficked workers are forced into these compounds, generating billions of dollars annually through digital fraud, cryptocurrency scams, and other illegal schemes.

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China Pressures Myanmar to Act

Myanmar’s military government has been under increasing pressure from China—one of its most influential allies—to dismantle scam compounds that have targeted large numbers of Chinese citizens.

Experts note that while the Myanmar military has historically overlooked the operations of these criminal hubs, the recent uptick in raids appears to be a strategic response to Beijing’s growing frustration.

Some analysts suggest the crackdown is partly propaganda-driven: an attempt to ease diplomatic pressure while still protecting revenue streams that benefit military-aligned militias and local power brokers.

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Recent Raids Highlight Expanding Crackdown

The raid on Shwe Kokko is part of a broader offensive:

• October: More than 2,000 suspects were arrested at KK Park, another major scam center on the Thai border.
• September: The U.S. Treasury Department issued sanctions against over 20 individuals and companies in Myanmar and Cambodia for involvement in transnational fraud and human trafficking networks.

Despite these actions, many workers—both trafficked victims and voluntary participants—remain trapped inside scam compounds throughout the region.