The Rising Threat of Southeast Asian Scam Centers: How Criminal Networks Exploit Forced Labor for Global Fraud Operations

Victims worldwide have lost tens of billions of dollars to sophisticated scams while hundreds of thousands remain trapped in forced labor operations across Southeast Asia.

It typically begins innocuously - a text message inquiring about weekend availability, offering part-time work, or simply saying "hello" from an unfamiliar number. Behind these messages are laborers working exhausting 12-16 hour shifts, sending countless messages in hopes someone will respond.

The endgame is always financial exploitation, with global losses reaching tens of billions of dollars while hundreds of thousands of people are forced to work in these criminal enterprises. These workers are typically housed in extensive complexes throughout Southeast Asia, where the scamming industry has grown substantially.

The complexity of eliminating this criminal industry is significant. Recently, Myanmar's military raided one notorious scam compound - the enormous KK Park along Thailand's border - announcing its closure, though civil society organizations later reported sections remained operational.

Approximately 1,500 workers fled during the raid, including hundreds from India alongside Chinese, Filipino, Vietnamese, Ethiopian and Kenyan nationals, crossing into Thailand. Military forces subsequently demolished several buildings within the vast complex, according to Thai military sources.

Thailand is now coordinating with India and other governments to repatriate these individuals. Recently, one of the largest groups returned home aboard Indian air force transport planes, with additional repatriations scheduled.

However, KK Park represents just one of dozens of such centers along the Thai-Myanmar border and hundreds throughout Southeast Asia.

Scam compounds typically occupy rural areas as sprawling complexes featuring sleeping quarters, shops, and entertainment facilities. They follow a development model where a single property is constructed and then spaces inside are leased to various criminal operations.

These operations frequently function under protection from local influential figures. Smaller operations also exist within legitimate office buildings or urban residential properties.

The centers evolved from both physical and online casinos that proliferated across Southeast Asia. The United Nations Office on Drugs and Crime documented over 340 licensed and unlicensed casinos in 2021 alone.

These gambling establishments and associated junket tours attracted wealthy clients from China, where gambling is prohibited, and are typically operated by Chinese criminal organizations.

During the pandemic, strict travel restrictions made visiting such locations impossible. Lacking customers, some online casinos transformed their business model into criminal operations, defrauding victims globally through digital schemes.

According to a 2023 report from the Office of the United Nations High Commissioner for Human Rights, approximately 120,000 people across Myanmar may be held in forced labor conditions working on online scams, with another 100,000 in Cambodia.

While these figures represent estimates, scam centers rely on both trafficked and voluntary workers, attracted by false promises of comparatively high salaries and comfortable office work.

Initially, workers came primarily from China and Chinese-speaking countries, but the UN drugs and crime office now reports laborers from 56 countries, from Indonesia to Liberia.

The reality starkly contrasts with their expectations - passports are typically confiscated to prevent escape. Only senior managers and trusted lieutenants enjoy freedom of movement. Underperforming workers face physical abuse and other punishments.

Scammers target victims worldwide, assisted by AI-powered translation tools that break language barriers.

In the Philippines, authorities recently raided a facility where workers targeted Chinese nationals in investment schemes. Following scripts, scammers impersonated executives at the state-owned China National Petroleum Corporation, convincing targets to invest in crude oil futures.

Last month, approximately 50 South Koreans were repatriated from Cambodia after being arrested for involvement with online scam organizations.

Recently, U.S. prosecutors indicted Chen Zhi, a Chinese-Cambodian businessman, for defrauding people through a massive criminal network. Prosecutors allege his organization scammed 250 Americans out of millions of dollars, with one victim losing $400,000 in cryptocurrency alone.

According to the U.S. Treasury Department, Americans lost at least $10 billion to Southeast Asia-based scams in 2024.

These scams employ various methods, including cryptocurrency investment schemes and online task scams where victims must pay to continue advancing - sometimes receiving actual payments in early stages to build credibility.

Many scammers create artificial urgency when requesting investments, claiming opportunities will expire without immediate action.

Despite government efforts to shut down operations and liberate trapped workers, activists report that major perpetrators remain at large. New scam centers continue emerging across Southeast Asia and globally.

A recent United Nations report revealed scammers have defrauded victims of billions through fake romantic relationships, fraudulent investment opportunities, and illegal gambling operations, with similar activities reported in Africa and Latin America.

"If we only rescue the victims, without arresting the Chinese mafia and transnational syndicates, there's no point," said Jay Kritiya, coordinator of the Civil Society Network for Victim Assistance in Human Trafficking.

"They can recruit more victims... they can scam anytime," warned Kritiya, who has participated in rescuing forced laborers from scam compounds.