To curb the surge of transnational scam networks in Southeast Asia, a proper regional response from ASEAN, India, China, and Australia is required
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The occurrence of forced criminality at a transnational level has risen considerably, with Southeast Asia forming the epicentre of these activities. Forced criminality refers to the trafficking of humans for criminal exploitation through deceptive means or force. Victims are forced to engage in illegal activities to make a profit for the traffickers and are faced with threats. Job scams originating in Southeast Asia accounted for almost half of the cybercrimes reported in India this year. Ahead of the 19th East Asia Summit, India reiterated its commitment to ASEAN centrality but it will need to seize the opportunity and partner with ASEAN to form definitive measures to address the rise in transnational criminal networks targeting Indians.
False advertisements of lucrative jobs in proximal locations such as Dubai and Bangkok attract youthful jobseekers only to be forced into a life of criminal activity in Southeast Asia.
According to reports from the Indian Crime Coordination Centre (I4C), India lost INR 1,776 crore during the first quarter of the year to cybercrimes originating from Southeast Asia. False advertisements of lucrative jobs in proximal locations such as Dubai and Bangkok attract youthful jobseekers only to be forced into a life of criminal activity in Southeast Asia. India rescued several victims in the recent past but the sheer potential of financial losses and threat to regional security demands decisive responses through a regional forum. China’s hardline on gambling activities concomitant with infrastructural projects and increased organised crime are responsible for the rise in scam centres. India and China can cooperate to mitigate the occurrence of forced criminality through scam centres by forming a targeted strategy with ASEAN.
The ASEAN region is now home to a novel human trafficking ring, where fraudulent job advertisements in marketing, customer services, translation, and construction are posted to lure skilled workers, who are then forced to work in scam centres. Scammers have primarily targeted young Indians hailing from Tamil Nadu, Maharashtra, Uttar Pradesh, Rajasthan, and Bihar. Job seekers are duped into these employment opportunities only to be forced into forming connections with people in foreign countries and to partake in illegal activities. Interpol has described this occurrence as a phenomenon that has evolved from being a regional crime to a “global human trafficking crisis”. The recruits that fall prey to the job scams are victims of human trafficking. They often face physical abuse, debt bondage, and forced labour, and are forced to commit cybercrimes, such as fraudulent cryptocurrency transactions against foreign targets.
The conditions that favour the operationalisation of scam centres, which are primarily housed in Laos, Cambodia, Myanmar, and the Philippines, include a rise in the number of Chinese gambling facilities and increased activity of small-scale extortion rings run by Chinese nationals. While gambling is illegal in mainland China, the appetite for gambling remains unabated, enabling Southeast Asian neighbours to satisfy the Chinese demand. Many of the casinos that have grown in the region tend to operate in a grey area—they are run by foreigners, housed in Special Economic Zones (SEZs), and conduct illicit activities. The Kings Roman casino in the Golden Triangle SEZ in Laos is on a 75-year lease to a Chinese entrepreneur with a history of organised crime, including trafficking of persons, drugs, exotic animals, money laundering, and bribery. These casinos are considered “safe havens” because they are housed in SEZs, which are subjected to different jurisdictional powers and weaker law enforcement. This has facilitated the operationalisation of scam centres at these casinos, which pose as call centres attempting to sell cryptocurrency.
The link between the gambling industry and crime was exacerbated during the pandemic when tourism was affected and casino premises were vacated, priming the infrastructure for occupation by organised crime syndicates.
In Cambodia, scam centres have been linked to BRI projects. The nexus between infrastructure-based development projects and crime is not new. Although the BRI holds the potential for tremendous connectivity and economic prospects, when housed in countries with weak governance capacities, limited regulatory mechanisms, and largely informal economies, the vulnerability to criminal activities is severe. Sihanoukville is the BRI’s flagship project in Cambodia, which underwent a massive construction phase with 100 casinos built or planned in the area since 2016. The link between the gambling industry and crime was exacerbated during the pandemic when tourism was affected and casino premises were vacated, priming the infrastructure for occupation by organised crime syndicates. Casinos had flourished prior to the pandemic through in-person and online gambling, but Cambodia’s banning of online gambling at China’s insistence, China’s cryptocurrency ban in 2021, and travel restrictions during lockdowns, led to a repurposing of empty casinos as scam centres. Sihanoukville has already been linked to the trafficking of environmental commodities, including ivory and pangolin scales, and is fast transforming into a hub of criminal activity.
Yatai Shwe Kokko SEZ in Myanmar was initially part of the BRI but was diverted for online gambling by a Chinese entrepreneur with aid from the Karen Border Guard Forces (BGF). Following the February 2021 coup, criminal networks repurposed the gambling facilities as scam centres. China has since distanced itself from the SEZ and officials claim that it is not part of the BRI. However, China’s BRI woes do not cease there. The China-Myanmar Economic Corridor’s (CMEC’s) infrastructure has been exploited by scam centre networks, either through associations with local elites or by misleading Chinese state-owned enterprises by falsely claiming to be supported by the BRI, thus gaining deferential law enforcement treatment. Additionally, crackdowns on gambling in the Philippines, Laos, and Cambodia have triggered scam centre activities to migrate to Myanmar, deepening the region’s vulnerabilities.
The phenomenal growth of scam centres since the pandemic has alarmed authorities with analyses estimating that a Southeast Asian country generates between US$ 7.5 to US$ 12.5 billion via scam activities; averaging US$ 173,000 per victim. Most of these networks target Chinese nationals but since the pandemic, scamsters have increasingly begun to target Indian nationals. The Ministry of External Affairs (MEA) has been involved in multiple efforts to rescue victims from Cambodia, Laos, and Thailand who recalled harsh working conditions and compulsive actions that prevented them from leaving these sites. MEA subsequently issued advisories to Indians highlighting the instances of ‘physical and mental torture’ that befalls victims and cautioned citizens over suspicious job advertisements. The I4C has set up a high-powered committee to overlook these issues concerning Southeast Asia. In addition, law enforcement authorities in Laos and China made several arrests and detainments of individuals associated with scams while India’s National Investigation Agency (NIA) conducted raids and arrested suspected scamsters.
The Ministry of External Affairs (MEA) has been involved in multiple efforts to rescue victims from Cambodia, Laos, and Thailand who recalled harsh working conditions and compulsive actions that prevented them from leaving these sites.
Despite these responses, transnational scam networks represent a distinct nexus of labour exploitation and human trafficking that pose several challenges to policymakers. The linkage between scam centres, casinos, and BRI projects complicates counter-trafficking responses. President Xi Jinping previously noted that BRI projects are often in areas associated with ‘conflict, turbulence, crisis, and challenge’. Owing to developmental activities associated with the BRI, there exist concomitant opportunities for criminal networks to exploit infrastructure and trade routes for nefarious activities. This poses a significant dilemma for these economies that require BRI projects for economic and regional connectivity but also harbour weak institutional measures to curb crime arising from the exploitation of these avenues, necessitating a collective regional response. India’s External Affairs Minister (EAM) raised the issue at the ASEAN Regional Forum and the BIMSTEC Foreign Ministers Retreat and emphasised the need for regional security. ‘The three mutuals’—mutual respect, mutual sensitivity, and mutual interest—were stressed during a recent meeting of foreign ministers on the sidelines of the SCO Council of Heads of State meeting. Taking into consideration the regional security implications of the issue, there is a dire need for dialogue and cooperation under the aegis of ASEAN, with India and China spearheading the talks.
Owing to developmental activities associated with the BRI, there exist concomitant opportunities for criminal networks to exploit infrastructure and trade routes for nefarious activities.
It is necessary for India and China to examine the push/pull factors that trigger migration and to develop innovative measures that promote safe migration. While government-led processes and agreements on human trafficking exist bilaterally with some Southeast Asian states, cooperative actions under ASEAN’s Convention Against Trafficking in Persons can aid in the development of uniform and stringent law enforcement protocols to prevent exploitative practices in the region. This is essential as reports suggest that law enforcement may be complicit in these activities, particularly in SEZs across countries, especially in Myanmar, whose political instability remains a concern. In addition, owing to the online nature of these crimes, the legality issues that arise from the victims of human trafficking can be contextualised through the abuse of technology clause in ASEAN’s Convention Against Trafficking in Persons, thereby alleviating potential difficulties in victims’ path to legal recourse. Another regional partner, Australia, has aided in five successful operations against cyber scam networks in Southeast Asia, forming another avenue for cooperative activity with ASEAN, particularly in intelligence-gathering and in cybersecurity measures against online scamming.
Scam operations form part of an international organised crime network and call for a regional response. ASEAN initiatives, through collaborative partnerships with India, China, and Australia, can aid in the implementation of measures, including the promotion of safe migratory practices, tougher law enforcement in SEZs that are vulnerable to criminal networks, and the development of intelligence-based responses. Collectively these actions will curb the proliferation of these exploitative networks and the trafficking of persons in an ASEAN way.
Lakshmy Ramakrishnan is an Associate Fellow at the Observer Research Foundation.
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Lakshmy is an Associate Fellow with ORF’s Centre for New Economic Diplomacy. Her work focuses on the intersection of biotechnology, health, and international relations, with a ...
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