Scam Center
   HOME

TheInfoList



OR:

A scam center, fraud factory, fraud park, scam factory, scam compound, scam hub, scam park, fraud center, fraud compound, or fraud hub is a collection of large
fraud In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...
organizations usually involved in
human trafficking Human trafficking is the act of recruiting, transporting, transferring, harboring, or receiving individuals through force, fraud, or coercion for the purpose of exploitation. This exploitation may include forced labor, sexual slavery, or oth ...
operations, generally found in
Southeast Asia Southeast Asia is the geographical United Nations geoscheme for Asia#South-eastern Asia, southeastern region of Asia, consisting of the regions that are situated south of China, east of the Indian subcontinent, and northwest of the Mainland Au ...
and usually operated by a criminal gang. Scam center operators lure foreign nationals to
scam A scam, or a confidence trick, is an attempt to defraud a person or group after first gaining their Trust (emotion), trust. Confidence tricks exploit victims using a combination of the victim's credulity, naivety, compassion, vanity, confidence ...
hubs, where they are forced into
modern slavery Contemporary slavery, also sometimes known as modern slavery or neo-slavery, refers to institutional slavery that continues to exist in the 21st century. Estimates of the number of enslaved people range from around 38 million to 49.6 million, d ...
, to scam internet users around the world into fraudulently buying
cryptocurrencies A cryptocurrency (colloquially crypto) is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Individual coin ownership records ...
or withdrawing cash via
social media Social media are interactive technologies that facilitate the Content creation, creation, information exchange, sharing and news aggregator, aggregation of Content (media), content (such as ideas, interests, and other forms of expression) amongs ...
and online dating apps. A typical scam is known as " pig butchering". Trafficked victims' passports are confiscated, and they are threatened with
organ harvesting Organ procurement (also called surgical recovery) is a surgical procedure that removes organs or tissues for reuse, typically for organ transplantation. Procedures If the organ donor is human, most countries require that the donor be legally d ...
and
forced prostitution Forced prostitution, also known as involuntary prostitution or compulsory prostitution, is prostitution or sexual slavery that takes place as a result of coercion by a third party. The terms "forced prostitution" or "enforced prostitution" app ...
if they do not successfully scam sufficiently. Scam center operations proliferated in
Cambodia Cambodia, officially the Kingdom of Cambodia, is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. It is bordered by Thailand to the northwest, Laos to the north, and Vietnam to the east, and has a coastline ...
,
Myanmar Myanmar, officially the Republic of the Union of Myanmar; and also referred to as Burma (the official English name until 1989), is a country in northwest Southeast Asia. It is the largest country by area in Mainland Southeast Asia and has ...
,
Laos Laos, officially the Lao People's Democratic Republic (LPDR), is the only landlocked country in Southeast Asia. It is bordered by Myanmar and China to the northwest, Vietnam to the east, Cambodia to the southeast, and Thailand to the west and ...
and other countries during the
COVID-19 pandemic The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...
and were further aided by the civil war in Myanmar.


Nomenclature

The term ''fraud factory'' first appeared in a 2022 ''Sydney Morning Herald'' article about the Southeast Asian scams and human trafficking industry and was coined by Jan Santiago of the Global Anti-Scam Organization (GASO), a victims advocacy group, in describing scamming operations in the region. The term was used by Kenya's Ministry of Foreign Affairs for the activity of trafficking victims to Asia where they use digital media to meet westerners and sell them cryptocurrencies. In Chinese, the term "fraud industrial park" (), sometimes shortened to 'park' (), has emerged in reference to these operations.


Organization and ownership

Fraud factories are often operated by Chinese criminal syndicates based in Southeast Asia. The gang's traditional revenue stream of
gambling Gambling (also known as betting or gaming) is the wagering of something of Value (economics), value ("the stakes") on a Event (probability theory), random event with the intent of winning something else of value, where instances of strategy (ga ...
reduced during the
COVID-19 pandemic The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...
and their activities increasingly focused on fraud factories thereafter to regain lost revenue.


Human trafficking victims

Between August and late September 2022, the Kenyan embassy in Thailand facilitated the rescue of 76 trafficking victims. The victims were mostly Kenyan, and included Ugandans and a Burundian. The criminal gangs who operated the fraud factories had been targeting young and educated Africans. In November 2022, one Kenyan died after a botched organ harvesting operation associated with a fraud factory in Myanmar. Myanmar is also an emerging destination for international labour trafficking, especially along its border areas. Victims in Myanmar include nationals from throughout Asia, including China,
Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
,
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
,
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...
,
Malaysia Malaysia is a country in Southeast Asia. Featuring the Tanjung Piai, southernmost point of continental Eurasia, it is a federation, federal constitutional monarchy consisting of States and federal territories of Malaysia, 13 states and thre ...
,
Nepal Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked country in South Asia. It is mainly situated in the Himalayas, but also includes parts of the Indo-Gangetic Plain. It borders the Tibet Autonomous Region of China Ch ...
, the Philippines,
Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...
, and Thailand. Victims are lured by the false promise of high-paying jobs, and are trafficked through major cities like
Yangon Yangon, formerly romanized as Rangoon, is the capital of the Yangon Region and the largest city of Myanmar. Yangon was the List of capitals of Myanmar, capital of Myanmar until 2005 and served as such until 2006, when the State Peace and Dev ...
and
Bangkok Bangkok, officially known in Thai language, Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estim ...
, and transit points like
Mae Sot Mae Sot (; , ; , ; , ) is a city in western Thailand that shares a border with Myanmar to the west. It is notable as a trade hub and for its substantial population of Burmese migrants and refugees. The city is part of Tak Province, 87 km fr ...
and
Chiang Rai Chiang Rai (, ; , ) is the northernmost major city in Thailand, with a population of about 200,000 people. It is located in Mueang Chiang Rai District, Chiang Rai Province. Chiang Rai was established as a capital city in the reign of King Ma ...
. They are then forced to work in "
special economic zones A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...
" along Myanmar's borders, such as Shwe Kokko. In late 2023, the
United Nations Human Rights Office The Office of the United Nations High Commissioner for Human Rights (OHCHR) is a department of the United Nations Secretariat that works to promote and protect human rights that are guaranteed under international law and stipulated in the Univers ...
estimated that at least 120,000 people in Myanmar were trafficked there and are being held in online scam compounds. At least 100,000 people are being held in similar circumstances in Cambodia. Other operations were also being run in Laos, the Philippines and Thailand. In May 2023, the
Philippine Senate The Senate of the Philippines () is the upper house of Congress, the bicameral legislature of the Philippines, with the House of Representatives as the lower house. The Senate is composed of 24 senators who are elected at-large (the country f ...
's Committee on Women, Children, Family Relations and Gender Equality conducted an inquiry into the proliferation of illegal activities involving foreign nationals, including human trafficking and racketeering, within scam hubs in various points of the archipelago. Senator Risa Hontiveros presented videos and reports of recent raids made by Philippine law enforcement agencies on a number of commercial and residential properties in Clark,
Pampanga Pampanga, officially the Province of Pampanga (; ; ), is a province in Central Luzon in the Philippines. Lying on the northern shore of Manila Bay, Pampanga is bordered by Tarlac to the north, Nueva Ecija to the northeast, Bulacan to the east, ...
, that resulted in the rescue of 1,300 victims and the confiscation of over
The Philippine peso sign (₱) is the currency symbol used for the Philippine peso, the official currency of the Philippines. The symbol resembles a Latin script, Latin letter P with two horizontal strokes. It differs from the currency symbol u ...
180 million in cash. By August, the committee discovered that many of these scam hubs had been "hiring" more locals than foreign nationals. In March 2024, more than 800 Filipinos and foreign nationals were rescued from a large scam hub in Bamban,
Tarlac Tarlac, officially the Province of Tarlac (; ; ; ; ), is a landlocked Provinces of the Philippines, province in the Philippines located in the Central Luzon Regions of the Philippines, region. It had a population of 1,503,456 people according to ...
, after it was raided for alleged illegal activities that included crypto and love scams; the hub was legally registered as a Philippine Offshore Gaming Operator (POGO) firm. In August 2024, another 162 foreign nationals were rescued from scam hubs in
Cebu Cebu ( ; ), officially the Province of Cebu (; ), is a province of the Philippines located in the Central Visayas region, and consists of a main island and 167 surrounding islands and islets. The coastal zone of Cebu is identified as a ...
illegally operating as POGOs. In January 2025, Chinese national Wang Xing was rescued from a scam center in
Myanmar Myanmar, officially the Republic of the Union of Myanmar; and also referred to as Burma (the official English name until 1989), is a country in northwest Southeast Asia. It is the largest country by area in Mainland Southeast Asia and has ...
after his girlfriend publicized his case on the social network
Weibo Weibo (), or Sina Weibo (), is a Chinese microblogging ( weibo) website. Launched by Sina Corporation on 14 August 2009, it is one of the biggest social media platforms in China, with over 582 million monthly active users (252 million daily ac ...
; he had been taken trafficked from
Mae Sot Mae Sot (; , ; , ; , ) is a city in western Thailand that shares a border with Myanmar to the west. It is notable as a trade hub and for its substantial population of Burmese migrants and refugees. The city is part of Tak Province, 87 km fr ...
,
Thailand Thailand, officially the Kingdom of Thailand and historically known as Siam (the official name until 1939), is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. With a population of almost 66 million, it spa ...
, and told the police that approximately 50 Chinese nationals were still being held at the same site where he had been detained.


Operations

In 2022,
BBC News BBC News is an operational business division of the British Broadcasting Corporation (BBC) responsible for the gathering and broadcasting of news and current affairs in the UK and around the world. The department is the world's largest broad ...
reported the locations of fraud factories as being in Laos and Myanmar, notably in Kachin where the Kachin conflict is occurring, a factor that makes rescues difficult. In 2022, ''
The Japan Times ''The Japan Times'' is Japan's largest and oldest English-language daily newspaper. It is published by , a subsidiary of News2u Holdings, Inc. It is headquartered in the in Kioicho, Chiyoda, Tokyo. History ''The Japan Times'' was launched by ...
'' reported that factories which initially started operations in Cambodia later switched locations to Laos, and that victims were held in
special economic zone A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...
s in Laos and Myanmar, specifically in
Myawaddy Myawaddy (; ; ; ; Eastern Pwo language, Phlone ) is a town in southeastern Myanmar, in Kayin State, close to the border with Thailand. Separated from the Thai border town of Mae Sot by the Moei River (Thaungyin River), the town is the most impo ...
, as well as casinos in Cambodia, particularly in Sihanoukville. The trafficked victims are lured with job offers, with the BBC reporting one victim having traveled to Thailand for a job before being driven to Laos. Scam center workers are trained to create online social media and dating personas, which they use to build up trust with westerners and engage in fake romance scams, with the goal of encouraging the westerners to buy cryptocurrencies. The targets of the bait and switch cyber crime were predominantly US citizens. The process of fraudulently building up trust with victims online in order to sell them cryptocurrencies is known as " pig butchering". The trafficked Kenyans were prevented from leaving unless they paid 1.2 million
Kenyan shilling The shilling (; abbreviation: KSh; ISO 4217, ISO code: KES) is the currency of Kenya. It is divided into 100 cents. The Central Bank of Kenya Act cap 491, mandated the printing and minting of the Kenyan shilling currency. Notation Prices in ...
s and were threatened with forced sex work and organ harvesting if they did not meet work performance targets. Two victims who spoke to the BBC were rescued by Awareness Against Human Trafficking. Traffickers confiscate their victims' passports. Some trafficking victims have returned to Kenya with broken limbs, from beatings by their captors. Vietnamese charity organization Blue Dragon reported that trafficking victims forced to work in scamming operations in Myanmar, are forced to sell their organs if they fail to meet quotas. During the
Myanmar civil war Myanmar has been embroiled in armed conflict since 1948, when the country, then known as Burma, gained independence from the United Kingdom. The conflict has largely been ethnic-based, with ethnic armed organisations fighting Myanmar's arm ...
, the Three Brotherhood Alliance launched Operation 1027 against the Myanmar military regime on 27 October 2023, with one of the intended goals being to eradicate scam centers in the
Kokang Self-Administered Zone The Kokang Self-Administered Zone (, ), also Laukkaing District () as stipulated by the 2008 Constitution of Myanmar, is a former de jure self-administered zone in northern Shan State. The zone is intended to be self-administered by the Koka ...
along the northeastern border with China, which had grown frustrated with the Myanmar government's lack of response against fraud factories. On 5 January 2024, the alliance fully captured the city of Laukkai in
Kokang Kokang (; ) is a region in Myanmar. It is located in the northern part of Shan State, with the Salween River to its west, and sharing a border with China's Yunnan Province to the east. Its total land area is around . The capital is Laukkai. K ...
from the Myanmar military, and soon more than 40,000 people involved in Kokang's fraud factories were returned to China. Analyst Jason Tower called their operation "extremely successful" in eradicating scam centers from Kokang, although some syndicates were able to move their operations to
Cambodia Cambodia, officially the Kingdom of Cambodia, is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. It is bordered by Thailand to the northwest, Laos to the north, and Vietnam to the east, and has a coastline ...
,
Laos Laos, officially the Lao People's Democratic Republic (LPDR), is the only landlocked country in Southeast Asia. It is bordered by Myanmar and China to the northwest, Vietnam to the east, Cambodia to the southeast, and Thailand to the west and ...
, and Myanmar's
Kayin State Kayin State (, ; ; , ), formerly known as Karen State, is a Administrative divisions of Myanmar, state of Myanmar. The capital city is Hpa-An, also spelled Pa-An. The terrain of the state is mountainous; with the Dawna Range running along the ...
. By March 2024, Brigadier General Zaw Min, a former Regional Operations Command (ROC) chief of Laukkai, was imprisoned by Myanmar's military government for his alleged role in online scam operations, and was later given a death sentence in July. After increased internet service provider (ISP) blocking of VPNs in Myanmar,
Starlink Starlink is a satellite internet constellation operated by Starlink Services, LLC, an international telecommunications provider that is a wholly owned subsidiary of American aerospace company SpaceX, providing coverage to around 130 countries ...
usage has surged in Myanmar, despite the service being unauthorized under Myanmar's Telecommunications Law. Starlink devices have become crucial for these cybercrime syndicates, especially after
Thailand Thailand, officially the Kingdom of Thailand and historically known as Siam (the official name until 1939), is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. With a population of almost 66 million, it spa ...
severed internet connections to Myanmar scam centers. In 2024, ''
Rappler Rappler (portmanteau of the words "rap" and "ripples") is a Mass media in the Philippines, Filipino online news website based in Pasig, Metro Manila, the Philippines. It was founded by 2021 Nobel Peace Prize laureate and convicted cyberlibelist ...
'' reported that many in the Philippine media as well as government had been unaware that a large number of scam hubs in the Philippines had been operating in the country under the legal cover of Philippine Offshore Gaming Operator (POGO) licenses that were issued by the
Philippine Amusement and Gaming Corporation Philippine Amusement and Gaming Corporation (PAGCOR; ) is a government-owned and controlled corporation established in 1977 through the Presidential Decree No. 1869. PAGCOR is the Philippines' largest contributor of revenue to the government a ...
; although POGO licenses were first issued in 2003, they flourished during the presidency of
Rodrigo Duterte Rodrigo Roa Duterte (, ; born March 28, 1945) is a Filipino lawyer and politician who served as the 16th president of the Philippines from 2016 to 2022. He is the first Philippine president from Mindanao, and is the oldest person to assum ...
. A 2024 congressional investigation of scam and trafficking operations by a
Tarlac Tarlac, officially the Province of Tarlac (; ; ; ; ), is a landlocked Provinces of the Philippines, province in the Philippines located in the Central Luzon Regions of the Philippines, region. It had a population of 1,503,456 people according to ...
POGO hub led to the arrest of Bamban mayor
Alice Guo Alice Leal Guo ( zh, t=郭華萍, p=Guō Huápíng, w=Kuo Hua-p'ing ; International Phonetic Alphabet, IPA: ) is a businesswoman and former politician in the Philippines who served as the mayor of the municipality of Bamban, Tarlac, from June ...
and her alleged sister and sister-in-law, Shiela Guo and
Cassandra Ong Katherine Cassandra Li Ong (born May 23, 2000), also nicknamed Cassy Li, is a Filipino businesswoman who was an associate of Lucky South 99 Outsourcing, Inc., a defunct Philippine Offshore Gaming Operator (POGO) in Porac, Pampanga, that has be ...
, as well as a manhunt for Duterte's former spokesperson,
Harry Roque Herminio Harry Lopez Roque Jr. (; born October 21, 1966) is a Filipino lawyer, politician, and former law professor. He served as the presidential spokesperson of President Rodrigo Duterte from 2017 to 2018 and from 2020 to 2021. He was the pa ...
, who has been on the run after questions on his sudden wealth led to questions about his role in a
Pampanga Pampanga, officially the Province of Pampanga (; ; ), is a province in Central Luzon in the Philippines. Lying on the northern shore of Manila Bay, Pampanga is bordered by Tarlac to the north, Nueva Ecija to the northeast, Bulacan to the east, ...
POGO hub, identified as Lucky South 99, that was also managed by Cassandra Ong. According to ''
Wired Wired may refer to: Arts, entertainment, and media Music * ''Wired'' (Jeff Beck album), 1976 * ''Wired'' (Hugh Cornwell album), 1993 * ''Wired'' (Mallory Knox album), 2017 * "Wired", a song by Prism from their album '' Beat Street'' * "Wired ...
'', "at least eight scam compounds based around the Myanmar-Thailand border region" use Starlink for their Internet connection either wholly or in part. In March 2024, the head of
Interpol The International Criminal Police Organization – INTERPOL (abbreviated as ICPO–INTERPOL), commonly known as Interpol ( , ; stylized in allcaps), is an international organization that facilitates worldwide police cooperation and crime cont ...
estimated that the combined revenues of Southeast Asian organized crime networks were $2 to $3 trillion per year, with a typical criminal organization making $50 billion per year. A 2024 study found that funds stolen by criminal syndicates based in Mekong countries likely exceeded $43.8 billion a year—nearly 40% of the combined formal GDP of Laos, Cambodia, and Myanmar, with a significant share of these profits flowing to the Myanmar military and to ruling elites in Cambodia and Laos.


Defensive criminal actions

Scam compounds are able to continue operating even though their locations are known, by bribing local law enforcement and politicians. As of 2024, organizations had allegedly harassed at least one researcher, using deep fakes to impersonate his father over phone and video chats, after stealing his phone number.


Destinations

Cambodia, Laos, and Myanmar in Southeast Asia have been the most known scam center destinations. These countries are particularly vulnerable due to their strategic location next to China and weak law enforcement. Below are known cyber scam hotspots: * : ** Sihanoukville ** Poipet **
Bavet Bavet (, ) is the largest city in Svay Rieng Province, Cambodia. An international border crossing between Cambodia and Vietnam, its counterpart across the border is Mộc Bài of Tây Ninh Province, Vietnam. Bavet is one of the "special econo ...
* : ** Golden Triangle Special Economic Zone * : ** Laukkai (on the border with China) **
Myawaddy Myawaddy (; ; ; ; Eastern Pwo language, Phlone ) is a town in southeastern Myanmar, in Kayin State, close to the border with Thailand. Separated from the Thai border town of Mae Sot by the Moei River (Thaungyin River), the town is the most impo ...
(on the border with Thailand) and nearby: *** KK Park *** Shwe Kokko ** Mong La (on the border with China)


International reactions

In November 2023, China issued arrest warrants for junta-aligned Ming Xuechang, and three other Ming family members for their involvement in online scamming operations. Ming later committed suicide. The other three were captured by Burmese authorities and handed over to China. In August 2024, the secretary of the Philippines'
Department of Migrant Workers The Department of Migrant Workers (DMW; ) is the Executive Departments of the Philippines, executive department of the Politics of the Philippines, Philippine government responsible for the protection of the rights and promotion of the welfare ...
said that Philippine authorities will "get the statements of the ilipinovictims f the fraud factories in Laosto pinpoint who recruited them ..in the Philippines and file the necessary charges.”


See also

* '' No More Bets'', a 2023 Chinese crime thriller film about people trafficked into a scam center General: *
Slavery in the 21st century Contemporary slavery, also sometimes known as modern slavery or neo-slavery, refers to institutional slavery that continues to exist in the 21st century. Estimates of the number of enslaved people range from around 38 million to 49.6 million, d ...
*
Cryptocurrency and crime Cryptocurrency and crime describe notable examples of cybercrime related to theft (or the otherwise illegal acquisition) of cryptocurrencies and some methods or security vulnerabilities commonly exploited. Cryptojacking is a form of cybercrime sp ...
*
List of confidence tricks Scams and confidence tricks are difficult to classify, because they change often and often contain elements of more than one type. Throughout this list, the perpetrator of the confidence trick is called the "con artist" or simply "artist", and ...


References

{{Portal bar, Crime, Myanmar, Laos, Cambodia Contemporary slavery in Asia Cybercrime Transnational organized crime Slavery in Asia Human trafficking in Asia Organized crime groups in China 2020s in Myanmar 2020s in Laos Crime in Myanmar Crime in Laos Crime in Cambodia Human trafficking in Myanmar Human trafficking in Cambodia Internet fraud Social impact of the COVID-19 pandemic Economic impact of the COVID-19 pandemic Economy of Cambodia Economy of Myanmar Economy of Laos Human trafficking in Thailand Cryptocurrency scams 2020s in Cambodia Myanmar civil war (2021–present) Crime in Southeast Asia