The afternoon tranquility of the Moei River on the Thai-Myanmar border was shattered by three loud explosions. Karen families, who were bathing and playing in the river, rushed in panic to the riverbank, a thick plume of black smoke rising from the woods behind them.
The conflict, which was triggered by a coup attempt by the Myanmar military nearly five years ago, has returned to the border.
But this fight is linked to a surge in fraud parks in Karen State over the past two years, which are controlled by Chinese criminal groups.
The military's attitude took a sharp turn: from ignoring the situation to launching a high-profile surprise attack.
Major General Zaw Min Tun, spokesman for the Myanmar military junta, stated:
"We are committed to eradicating online fraud at its root."
But there are good reasons to be skeptical of the military's account. This is not the first time Myanmar's long civil war has been intertwined with its fraud crisis. After losing control of large swathes of the country, the military junta launched a counter-offensive this year, reinforced by new recruits and new equipment such as drones supplied by Russia and China. In Karen State, the military repelled forces from its main rival, the Karen National Union (KNU), which has been fighting the military for eight decades and is one of the most vocal opponents of the coup attempt.
In late October, the army raided KK Park, one of Kayin State's largest and most notorious scam complexes, expelling thousands of foreigners engaged in online fraud. Some were volunteers, while others were scammed, trafficked, or forced to work there. The military released video footage of soldiers confiscating thousands of mobile phones, computers, and Elon Musk's Starlink satellite antennas. They began demolishing buildings with explosives.
This is a striking shift in attitude. For years, Myanmar's military rulers turned a blind eye to the rapidly expanding multi-billion dollar fraud operation along the Thai-Myanmar border. Local warlords allied with the military were the main protectors and business partners of the Chinese fraud ringleaders, amassing their fortunes as a result. Some of the funds even ended up in the pockets of the ruling general. The military junta attempted to blame the fraud on the KNU, but this was baseless; unlike other Karen armed groups, the KNU distanced itself from the operation.
Global Fraud Crisis and International Pressure
Victims worldwide have lost billions of dollars in "pig butchering" scams (romance scams), get-rich-quick cryptocurrency schemes, and seniors investing their retirement savings in fake funds, many of which originate in these centers. The darkest side of the industry occurs in Southeast Asia, where these online scams are linked to human trafficking, money laundering, and widespread human rights abuses.
The international community is increasingly concerned about this issue, and law enforcement agencies are strengthening coordination to combat this scourge. The United States has established an interagency anti-fraud task force. As one of the Myanmar military junta's closest allies, China has been pressuring it for years to take more action, as tens of thousands of Chinese citizens are both victims of online scams and victims of trafficking and ransom demands in the KK Industrial Complex. Judging from reports in Myanmar's official media showcasing the military's operations in the KK Industrial Complex, this pressure appears to have finally paid off.
Limitations of the crackdown: The relocation and spread of fraud strongholds
However, while the demolition operation at the KK campus was spectacular, it did not appear to have destroyed the fraud infrastructure there. Moreover, the military operation was concentrated only in this campus—in addition to dozens of others. The military did raid the fraud city of Shwe Kokko, but only entered a few buildings, and has so far demolished only one.
Thousands of foreign scam workers have left the KK Industrial Complex and the Stream Valley, crossing the Moi River to Thailand. Many have dispersed to different locations, despite the difficult and expensive transportation. Booking a car now costs 5,000 yuan, approximately $700 (£520). It is speculated that the main scam ringleaders have moved their operations further south, to more remote and secluded areas along the Myanmar border.
Last month, however, a group of scammed workers were trapped in two industrial parks in Minletpan town, known as "Shunda" and "Baoili." These parks were built along the river in the last two years. They are located in an area controlled by the Democratic Karen Buddhist Army (DKBA), one of the militia groups allied with the military government.
Unexpected discoveries and humanitarian dilemmas amidst war
According to a KNU spokesperson, on November 21, their fighters were engaged in combat with the military when they suddenly found themselves shot in the back by the DKBA in Minletpan. They turned and drove the DKBA away, but then unexpectedly found themselves in control of two scam centers and thousands of foreigners working there. KNU announced it wanted to set an example by inviting journalists and international law enforcement agencies to visit the occupied campus. It released photos and documents to expose how the scam operations operated, rather than destroying evidence as the military did at the KK campus.
It transported hundreds of workers across the river to Thailand, but about 1,000 (mainly Chinese citizens) refused to leave, likely fearing prosecution upon returning to China. However, with the exception of a few journalists, international interest in its spoils never materialized, and military junta forces began shelling the area in an attempt to retake the park—this is what we could hear from the Thai side. Many of the stranded fraudulent workers have now fled to other parts of Myanmar, but hundreds remain, camping under makeshift tarpaulins on the riverbank with hundreds of locals, hoping to escape the artillery fire.
Pre-election political maneuvering: the military government's image project
All these dramatic events stem from one thing: the military junta's much-criticized plan to hold elections later this month. The civil war sparked by the coup is ravaging the country. The military regime is hated by most of the Burmese people and viewed as an outcast internationally. The generals are looking for a way out (a way to step down) in exchange for a semblance of legitimacy and to garner some support from the opposition. They opted for elections, but major opposition groups are either unable or unwilling to participate, and much of the country is too volatile to even hold a vote.
Therefore, the military will prioritize regaining as much territory as possible from insurgents before the election. It is also attempting to reshape its image through a high-profile operation against the fraud zone. This is particularly important to its most powerful international ally, China.
Spring Breeze Blows Again: The Southward Shift and Persistence of the Fraud Industry
As we approached the border, we saw dust billowing over the KK campus, with more buildings being demolished. Some of the largest buildings were twisted and deformed, windows shattered; walls of other buildings were being torn down by excavators. But many buildings in the distance remained intact. Some rooftops had clearly visible white squares, almost certainly Starlink satellite antennas, suggesting that some fraudulent work may still be underway there.
Driving south from Thailand for an hour and a half, you'll reach a quiet border crossing called Wa Le (Wawlay in Burmese). The river here is very narrow, almost a stream; passing through an iron gate and crossing a small blue wooden bridge, you enter Myanmar, greeted by the KNU flag. Although territorial disputes are fierce around Wawlay, with the KNU seizing several military bases earlier this year, the border crossing remains under DKBA control.
On the Thai side, large signs warn people against being lured to work at scam centers. However, just meters away, a walled compound topped with barbed wire has been built along the riverbank. This is called "Hengsheng 3"; we can hear generators running and security guards talking on the other side of the wall.
There are windows with iron bars and a Starlink antenna on the roof. Monitoring organizations have confirmed this location and several other new areas around Wawlay. More criminal groups have moved further south to Payathonzu, near the Three Pagodas Pass border crossing.
Regardless of the future of well-known scam parks such as KK Park and Water Valley, it is too early to judge whether they have actually been shut down, as scams remain rampant in Myanmar.
