01/20/2025
Thailand is grappling with the fallout of regional scamming networks, which have stolen an estimated $64 billion annually, according to the United States Institute of Peace (USIP).
These illegal operations, based in Myanmar, Cambodia, and Laos, rely on weak governance and porous borders, with Thailand heavily impacted as a neighbour and transit hub, the USIP report titled “Transnational Crime in Southeast Asia: A Growing Threat to Global Peace and Security” said.
The Thai-Myanmar border, particularly near Mae Sot, has become a critical link for scam compounds controlled by Saw Chit Thu’s Karen Border Guard Force, it said.
While Thailand does not host major scam centres, its infrastructure is exploited for money laundering, and its borders are used to traffic victims and supplies, the report showed.
Jason Tower, a USIP analyst, said that resources like fuel and telecommunications are smuggled from Thailand to sustain the scam operations,
Tower warned that these criminal hubs, which generate billions of dollars, pose serious risks to Thailand’s economy and security.
The report also revealed that scam networks in the region contribute to nearly 40% of the combined GDP of Myanmar, Cambodia, and Laos.
The report said a rise in scamming hubs along the border, with new compounds being set up in isolated areas, highlights how Thailand’s border zones are becoming entangled in regional crime networks.
According to the USIP, the militarised nature of these compounds also increases tensions near the Thai border, as revenue from scams strengthens Myanmar’s military and affiliated groups.
Tower suggested that sanctions against figures like Saw Chit Thu and stricter regulations could disrupt the networks’ operations.
Without stronger measures, there is a risk that parts of the region could devolve into entrenched “scamming states”, threatening broader regional stability, Tower warned.
Thailand must tighten border controls and work with international partners to combat these criminal operations. Failure to act could see the country face growing financial and security challenges in the years ahead, the report wrote.
