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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 ]

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