According to Thai media outlet The Diplomat, Thailand has finally cut off the internet and mobile phone connections from call centers controlled by Myanmar scammers! Thailand's National Broadcasting and Telecommunications Commission (NBTC) said it had cut internet and phone connections to an area in southeastern Myanmar that was home to large-scale cyber fraud.
NBTC officials said at a press conference that the connections provided to online scammers in the town of Shwe Kokko were illegal. In recent years, the town of Recoco in Myawaddy, which borders the Thai town of Mae Sot, has become a hub for casinos, online scams, and other sordid activities and criminals, all bathed in neon lights.
The town of Reykoko is a border town in Myanmar, located across the Ban Wang Pha River in Mae Lama District, Tak Province, Thailand. Most of the Ricoco scammers started developing casinos in the late 2010s. They then dabble in telecom scams, attracting hundreds of workers (often from China) who promise them well-paying jobs but enslave them once they arrive.
This week, the Irrawaddy newspaper published an interview with a young Burmese worker who was taken to work in the town of Ruikoko. He estimated that there were about 30 fraudulent companies in the city, each employing "at least 100 employees." He said that many of these activities took place in establishments of prostitution, drug trafficking and gambling.
The campaigns, carried out through fraudulent emails and text messages, "mainly targeted European and American citizens, especially gullible seniors."
The framework for the development of the town of Ruikoko is a joint venture agreement between the Myanmar subsidiary of Yatai International Holding Group, registered in Hong Kong, and a company controlled by the Karen Border Force (BGF), which controls part of the territory in eastern Kayin State.
The Karen Border Guard (BGF) is a Christian Karen ethnic group, which, unlike other Karen ethnic groups, is allied with the Burmese junta. The NBTC official's comments did not clarify whether it was the committee itself that cut the connection or whether the blame lies with Thai internet service providers and/or local officials.
It is unclear whether the action or order also applies to KK Park, another online scam hub in Myawadee Township. It's unclear whether Thailand's recent decision to restrict internet connectivity in the town of Rikoko will have any impact on scammers in the city. Last June, Thailand's Provincial Electricity Authority (PEA) said it had cut off electricity to the town of Rikoko.
While the move has prompted many to cross the Thai border to buy generators, it has apparently failed to curb online fraud. Scammers are simply using a portion of their huge profits to invest in other energy sources. In fact, the number of fraudulent transactions in the town of Ricoco may have increased since then.
China has taken tough action against similar operations along its border with Myanmar, with insurgents taking control of many towns and shutting down call centers in the north of the country. Interestingly, Thailand's order follows a directive issued by the BGF on May 3 to evacuate foreigners engaged in online commerce by the end of October.
"Aliens who cross the border illegally must exit the country by the same route. If it is found after October 31, effective measures will be taken. "These call centers are usually controlled by grey industry practitioners in China. The Irrawaddy newspaper quoted a spokesman for the BGF as saying that the group was unhappy with cyber scammers operating on its territory.
"We have repeatedly asked them to leave," the spokesman said. But as with the decision to sever ties with the Myanmar military earlier this year, the BGF's true motives remain unclear. When the Karen National Liberation Army (KNLA) took control of Myowadi town, the BGF, although allied with the junta, was not involved in the fighting with the Myanmar military.
They remained there and did not hinder the activities of the Karen National Liberation Army. They even declared their desire to form an alliance with the Karen National Liberation Army, but when the Karen army left and the Burmese army occupied the town, they stayed there to help the army. Their main goal is to stay in the area, regardless of which side controls the area.
According to a recent report by the U.S. Institute of Peace, the organization earns $192 million a year from scammers and other businesses operating in Sweco, half of which is paid to the Myanmar military. But it is uncertain whether the agreement will still be valid after the BGF broke with the army. Considering what the real crackdown will bring, the BGF directive must be seen in the context of recent developments.
In particular, the struggle between the Myanmar army and the Karen National Union (KNU) for control of the town of Myawadi on the Thai border. The BGF and its leader, Colonel Saw Chit Thu, successfully supported both sides in the struggle for control of the city. Its policy is clearly focused on maintaining its autonomy in the changing dynamics of conflict in Kayin State.
This suggests that any attempt to crack down on scammers in border areas is part of a hidden agenda to maintain the autonomy of the region as well as to prop up commercial (and sometimes criminal) activities in the region.