The demolition of a notorious business park in Myanmar was presented as a decisive blow against a global criminal enterprise. But the reality reveals a far more entrenched and disturbing phenomenon: the birth of the 'scam state'.
The Empty Raid on an Infamous Hub
For days, the sprawling complex known as KK Park in Myawaddy, Myanmar, had been quietly emptying. When the explosions finally came, they levelled deserted office blocks, a silent four-storey hospital, and empty dormitories. Myanmar's military junta declared the destruction of one of Southeast Asia's most infamous scam centres, a facility that had held tens of thousands trafficked and forced to defraud people worldwide.
Yet, it was largely a performance. The park's operators had fled long before, tipped off about the impending crackdown. While over 1,000 labourers escaped and another 2,000 were detained, up to 20,000 others simply vanished, likely moved to other locations. Away from the junta's cameras, the vast scam industry continues to thrive unabated.
From Niche Fraud to Industrial-Scale Political Economy
Experts now warn we are entering the age of the 'scam state', akin to the narco-state, where an illicit industry embeds itself deep into a nation's institutions, reshapes its economy, and corrupts its governance. Jacob Sims, a visiting fellow at Harvard University's Asia Centre, states that scamming has mutated in just five years from small online fraud rings into the dominant economic and political engine for the entire Mekong sub-region.
The industry has evolved from clumsy 'Nigerian prince' emails into a sophisticated system centred on 'pig-butchering' scams. These involve cultivating online relationships before coaxing victims into fake cryptocurrency investments. Generative AI, deepfake video calls, and mirrored websites are now standard tools, with one survey finding victims lose an average of $155,000 each.
The profits are staggering. By late 2024, cyber scamming in Mekong countries was generating an estimated $44bn annually, equivalent to 40% of the region's combined formal economy. Jason Tower of the Global Initiative against Transnational Organised Crime notes this is a conservative figure, with the global market now exceeding $70bn a year—a scale rivalling the illicit drug trade.
State Complicity and Blatant Impunity
The sheer scale of the compounds, operating openly in special economic zones and lawless border areas, signals profound state complicity. In Laos, around 400 centres operate in the Golden Triangle zone. Cyber Scam Monitor has identified 253 suspected sites across Cambodia, many enormous and in plain sight.
"The fact this is happening in a very public way shows just the extreme level of impunity," says Jason Tower. Criminal masterminds are not hiding; they are becoming state-embedded. Chen Zhi, recently hit by joint UK and US sanctions for allegedly masterminding the Prince Group scam network, served as an adviser to Cambodia's prime minister. The group denies any unlawful activity.
In Thailand, a deputy finance minister resigned over alleged links to Cambodian scam operations. In Myanmar, scam centres are a key revenue stream for armed groups. The recent raids, analysts argue, are largely 'political theatre'—targeting minor players to appease international pressure while preserving a wildly profitable sector.
Government responses have been dismissive. Myanmar's military claims it is working to "eradicate scam activities", while Cambodia labelled allegations of state-supported cybercrime networks as "baseless". Meanwhile, the infrastructure expands, the profits soar, and the era of the scam state becomes an alarming global reality.
