Human trafficking and online scam enterprises
A fraud factory or fraud park is a collection of large fraud organizations usually involved💵 in human trafficking operations, commonly found in Southeast Asia (including Cambodia, Myanmar, or Laos) and usually operated by a criminal💵 gang. Fraud factory operators lure foreign nationals to scam hubs, where they are forced into modern slavery, to scam internet💵 users around the world into fraudulently buying cryptocurrencies or withdrawing cash, via social media and online dating apps.[1] Trafficking victims'💵 passports are confiscated, and they are threatened with organ harvesting and forced prostitution if they do not scam sufficiently successfully.
Nomenclature💵 [ edit ]
The term fraud factory first appeared in a Sydney Morning Herald article about the Southeast Asian scams and💵 human trafficking industry[2] and was coined by Jan Santiago of Global Anti-Scam Organization (GASO), a victims advocacy group, in describing💵 scamming operations in the region.[3][4]
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.[5] In Chinese, the term "fraud industrial💵 park" (Chinese: 詐騙園區; pinyin: zhàpiàn yuánqū; lit. 'fraud park zone') has emerged in reference to these operations.
Organization and ownership [💵 edit ]
Fraud factories are often operated by Chinese criminal gangs based in Southeast Asia.[6] The gang's traditional revenue stream of💵 gambling reduced during the COVID-19 pandemic and their activities increasingly focus on fraud factories to regain lost revenue.[6]
Human trafficking victims💵 [ edit ]
Between August and late September 2024, the Kenya embassy to Thailand facilitated the rescue of 76 trafficking victims.[5]💵 The victims were mostly Kenyan, but also included Ugandans and a Burundian.[5] The criminal gangs who operate the fraud factories💵 target young and educated Africans.[5] In November 2024, one Kenyan died after a botched organ harvesting operation associated with a💵 fraud factory in Myanmar.[7][5]
Myanmar is also an emerging destination for international labour trafficking, especially along its border areas.[8] Victims in💵 Myanmar include nationals from throughout Asia, including China,[1] Hong Kong,[1] India,[9] Indonesia,[1] Malaysia,[1] Nepal,[1] the Philippines,[10] Taiwan,[11] and Thailand.[12] Victims💵 are lured by the false promise of high-paying jobs, and are trafficked through major cities like Yangon and Bangkok, and💵 transit points like Mae Sot and Chiang Rai.[8] They are then forced to work in "special economic zones" along the💵 country's borders such as Shwe Kokko.[8]
In late 2024, the United Nations estimated that at least 120,000 people in Myanmar are💵 being held in online scam compounds, while at least 100,000 people are being held in similar circumstances in Cambodia.[13]
Operations [💵 edit ]
The Golden Triangle Special Economic Zone by the banks of the Mekong River
BBC News 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.[5] The Japan Times reported that factories which initially started operations in Cambodia later switched locations to Laos and💵 that victims were held in special economic zones in Laos and Myanmar (and also specifically Myawaddy), as well as casinos💵 in Cambodia.[6] 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.[5]
Fraud factory 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.[5][6] The targets of the bait and switch cyber crime were predominantly US citizens.[5] The process💵 of fraudulently building up trust with victims online in order to sell them cryptocurrencies is known as "pig butchering".[6]
The trafficked💵 Kenyans were prevented from leaving unless they paid 1.2m Kenyan shillings and were threatened with forced sex work and organ💵 harvesting if they did not meet work performance targets.[5] Two victims who spoke to the BBC were rescued by Awareness💵 Against Human Trafficking.[5] Traffickers confiscate their victims’ passports. Some trafficking victims have returned to Kenya with broken limbs, from beatings💵 by their captors.[5] Vietnamese charity organization Blue Dragon reported trafficking victims forced to work in scamming operations in Myanmar are💵 forced to sell their organs if they fail to meet quotas.[14]
Destinations [ edit ]
Cambodia, Laos, and Myanmar in Southeast Asia💵 are known fraud factory destinations.[9] These countries are particularly vulnerable due to their strategic location next to China and weak💵 law enforcement.[15] Below are known cyber scam hotspots:
International reactions [ edit ]
In November 2024, China issued arrest warrants for junta-aligned💵 Ming Xuecheng and three other Ming family members for their involvement in online scamming operations.[17]
See also [ edit ]
