(Kuala Lumpur, 29th) Malaysia, Indonesia, and Thailand have recently repeatedly raided scam bases, and Cambodia continues to eradicate scam compounds, raising concerns about whether fraud syndicates are shifting their operations to other Southeast Asian countries. Experts interviewed believe that while there is indeed a more obvious cross-border movement within the region, this is not simply a 'migration wave', but rather the scam industry undergoing a new round of regional restructuring in response to law enforcement pressure.
The Malaysian International Humanitarian Organization (MHO) recently pointed out that parts of scam syndicates originally active in Cambodia, Laos, and Myanmar have shifted their operations to at least two secret locations in Malaysia, operating for more than six months. Malaysian police subsequently requested the organization to provide intelligence in order to launch an investigation.
Meanwhile, Malaysia, Thailand, Indonesia, and Vietnam have carried out large-scale crackdowns in recent months. Malaysian police, for example, raided dozens of luxurious residences in May, dismantled multiple international scam gangs, arrested 187 people, and seized assets worth about 58 million ringgit.
Jacob Sims, Senior Advisor at U.S.-based data analytics and risk intelligence company Inca Digital, said in an interview that Cambodia, Myanmar, and Laos remain the core of the scam industry, but as countries continue to suppress large-scale scam compounds, the current trend in Southeast Asia is not simply about relocation, but a regional restructuring.
He said: 'We shouldn't simply view Malaysia, Indonesia, and Thailand as the "new Cambodia", since the political environments are very different, but the roles of these countries as nodes for workforce movement, recruitment, money channels, behind-the-scenes coordination, and some operational bases are becoming increasingly important in the scam ecosystem.'
Ivan Franceschini, a lecturer at the University of Melbourne, Australia, who has long studied scam compounds in Southeast Asia, also believes that after stronger law enforcement in Cambodia, cross-border movement of fraud gangs will become even more widespread. Malaysia is often mentioned, but it's still difficult to say whether a new large-scale scam base will emerge at this point.
He said in an interview that initially, when Cambodia started enforcing crackdowns, scam gangs mostly just relocated from well-watched cities like Sihanoukville to more secluded border areas like Preah Vihear. As enforcement expanded, more transnational shifts gradually emerged.
Amnesty International recently reported that as of April this year, 86 scam compounds in operation had been identified, but only 24 had faced law enforcement actions. The Cambodian government countered that from July last year through mid-April this year, more than 250 scam sites had been raided, and nearly 1,500 suspects from 19 countries had been prosecuted.
The interviewed scholars generally believe that it will be difficult for the region to see large scam compounds like those in Cambodia and Myanmar in the past.
Franceschini pointed out that when selecting locations, scam syndicates value not simply war or weak rule of law, but rather whether there is a stable operating environment and local protection networks.
He said, large scam compounds often require huge investments to build, so criminal gangs tend to form mutually beneficial relationships with local elites to ensure their investments won't quickly collapse because of law enforcement actions.
Aside from protection networks, infrastructure and logistics conditions are equally important, including reliable internet, land resources, and convenient conditions for the movement of people. In addition, in the past, the Philippine Offshore Gaming Operator (POGO) system and Cambodia’s online gambling licensing system also provided a legal facade for some syndicates, making it easier for them to take root and develop.
However, as law enforcement pressure in the region has increased, he believes that in the future, scam gangs are more likely to hide in villas, apartments, and residential areas, operating in a dispersed and small-scale manner to lower exposure risk. 'What we may be witnessing is a return to the scam industry’s earliest model of development.'
Sims also believes that whether these scam compounds will in the future re-integrate into large-scale parks or continue to disperse into small nodes remains to be seen.
In recent months, Malaysia, Indonesia, and Thailand have successively reviewed and even announced tightening of their visa-free policies to combat cross-border scams and illegal gambling activities.
Malaysian police previously noted that visa-free policies, to some extent, 'make it easier for foreign criminals to operate locally'; Indonesia announced last month, after arresting more than 500 foreigners suspected of running illegal online gambling and scam operations, that it would review its visa-free treatment for ASEAN nationals.
However, the scholars interviewed believe that visa-free policies are only a tool exploited by scam groups, not the root cause of the industry’s expansion.
Franceschini pointed out that even when borders were strictly controlled during the pandemic, scam syndicates still moved across borders through human smuggling, bribery, long-term visas, or even purchasing passports; the core issue is the abuse of immigration systems and the protection networks behind them.
He believes that simply tightening visa-free policies could harm tourism, legitimate business, and ASEAN people’s freedom of movement, and may actually prompt scam gangs to recruit local workers directly. 'The scam industry will adapt; the only thing that changes is the source of its workforce.'
Sims also pointed out that while stricter visa controls may catch overstayers and grassroots participants, it’s hard to reach the real organizers, financiers, professional enablers, and corrupt protectors who support the industry’s operation, and such measures may end up as little more than a 'political gesture', ultimately unable to truly weaken the scam industry.
Franceschini further noted that the threshold for entering the scam industry is now much lower than in the past; cybercrime tools are easily obtained through social media and messaging platforms, while money laundering channels are more accessible. Artificial intelligence (AI) is being widely used for deepfakes, voice changing, face swapping, and automated scams, greatly reducing the reliance on large-scale human labor.
The interviewed scholars believe that ASEAN has in recent years gradually listed cross-border scams as a regional priority issue, but law enforcement cooperation still lags behind the criminal syndicates.
Sims noted that the resilience of scam syndicates lies in the fact that law enforcement usually focuses on raiding scam compounds, but does not tackle the underlying architecture: political protection, financial systems, and technology support.
He believes that although there has been progress in cooperation among ASEAN member states, it is still constrained by the principle of sovereignty and political realities.
'What’s really needed is a network-centered cooperation model—one that can synchronously track people, money, companies, domains, gazettes, and intermediaries across different judicial jurisdictions.'
Franceschini also said that ASEAN has set up working groups and established best practice guidelines, but cross-border law enforcement remains the greatest bottleneck, and real-time intelligence sharing is still extremely limited. 'Many law enforcement officers have told me that getting information from other jurisdictions is very difficult and often takes months, while scammers can communicate in a matter of minutes.'
He also emphasized that people who were tricked into working at scam compounds should be viewed as victims; many are left stranded and isolated after the compounds are dismantled. Authorities should face up to this problem and 'provide assistance, a way home, and follow-up support' for these people, and work with them to track down human traffickers and scam ring leaders.
Franceschini is a co-founder of the non-profit organization EOS Collective, which focuses on the investigation and research of cross-border crime, and provides assistance to relevant victims.
According to data from Thai human rights organizations, there are still over 5,300 people trapped in scam compounds on the Thai-Myanmar border, showing that regional crackdowns have not yet completely dismantled the scam networks.
Melinda, a researcher at the ASEAN Studies Centre of the Yusof Ishak Institute for Southeast Asian Studies, pointed out in an interview that transnational fraud has become one of the region's most concerning geopolitical issues—surpassing even South China Sea security concerns.
She said that in recent years ASEAN has strengthened regional cooperation, including passing a declaration in 2023 to combat technology-enabled human trafficking, and is promoting enhanced cooperation among member states in law enforcement, intelligence sharing, victim protection, and judicial cooperation.
Meanwhile, Malaysia, Thailand, Indonesia, and Vietnam have carried out large-scale crackdowns in recent months. Malaysian police, for example, raided dozens of luxurious residences in May, dismantled multiple international scam gangs, arrested 187 people, and seized assets worth about 58 million ringgit.
Jacob Sims, Senior Advisor at U.S.-based data analytics and risk intelligence company Inca Digital, said in an interview that Cambodia, Myanmar, and Laos remain the core of the scam industry, but as countries continue to suppress large-scale scam compounds, the current trend in Southeast Asia is not simply about relocation, but a regional restructuring.
He said: 'We shouldn't simply view Malaysia, Indonesia, and Thailand as the "new Cambodia", since the political environments are very different, but the roles of these countries as nodes for workforce movement, recruitment, money channels, behind-the-scenes coordination, and some operational bases are becoming increasingly important in the scam ecosystem.'
Ivan Franceschini, a lecturer at the University of Melbourne, Australia, who has long studied scam compounds in Southeast Asia, also believes that after stronger law enforcement in Cambodia, cross-border movement of fraud gangs will become even more widespread. Malaysia is often mentioned, but it's still difficult to say whether a new large-scale scam base will emerge at this point.
He said in an interview that initially, when Cambodia started enforcing crackdowns, scam gangs mostly just relocated from well-watched cities like Sihanoukville to more secluded border areas like Preah Vihear. As enforcement expanded, more transnational shifts gradually emerged.
Amnesty International recently reported that as of April this year, 86 scam compounds in operation had been identified, but only 24 had faced law enforcement actions. The Cambodian government countered that from July last year through mid-April this year, more than 250 scam sites had been raided, and nearly 1,500 suspects from 19 countries had been prosecuted.
The interviewed scholars generally believe that it will be difficult for the region to see large scam compounds like those in Cambodia and Myanmar in the past.
Franceschini pointed out that when selecting locations, scam syndicates value not simply war or weak rule of law, but rather whether there is a stable operating environment and local protection networks.
He said, large scam compounds often require huge investments to build, so criminal gangs tend to form mutually beneficial relationships with local elites to ensure their investments won't quickly collapse because of law enforcement actions.
Aside from protection networks, infrastructure and logistics conditions are equally important, including reliable internet, land resources, and convenient conditions for the movement of people. In addition, in the past, the Philippine Offshore Gaming Operator (POGO) system and Cambodia’s online gambling licensing system also provided a legal facade for some syndicates, making it easier for them to take root and develop.
However, as law enforcement pressure in the region has increased, he believes that in the future, scam gangs are more likely to hide in villas, apartments, and residential areas, operating in a dispersed and small-scale manner to lower exposure risk. 'What we may be witnessing is a return to the scam industry’s earliest model of development.'
Sims also believes that whether these scam compounds will in the future re-integrate into large-scale parks or continue to disperse into small nodes remains to be seen.
In recent months, Malaysia, Indonesia, and Thailand have successively reviewed and even announced tightening of their visa-free policies to combat cross-border scams and illegal gambling activities.
Malaysian police previously noted that visa-free policies, to some extent, 'make it easier for foreign criminals to operate locally'; Indonesia announced last month, after arresting more than 500 foreigners suspected of running illegal online gambling and scam operations, that it would review its visa-free treatment for ASEAN nationals.
However, the scholars interviewed believe that visa-free policies are only a tool exploited by scam groups, not the root cause of the industry’s expansion.
Franceschini pointed out that even when borders were strictly controlled during the pandemic, scam syndicates still moved across borders through human smuggling, bribery, long-term visas, or even purchasing passports; the core issue is the abuse of immigration systems and the protection networks behind them.
He believes that simply tightening visa-free policies could harm tourism, legitimate business, and ASEAN people’s freedom of movement, and may actually prompt scam gangs to recruit local workers directly. 'The scam industry will adapt; the only thing that changes is the source of its workforce.'
Sims also pointed out that while stricter visa controls may catch overstayers and grassroots participants, it’s hard to reach the real organizers, financiers, professional enablers, and corrupt protectors who support the industry’s operation, and such measures may end up as little more than a 'political gesture', ultimately unable to truly weaken the scam industry.
Franceschini further noted that the threshold for entering the scam industry is now much lower than in the past; cybercrime tools are easily obtained through social media and messaging platforms, while money laundering channels are more accessible. Artificial intelligence (AI) is being widely used for deepfakes, voice changing, face swapping, and automated scams, greatly reducing the reliance on large-scale human labor.
The interviewed scholars believe that ASEAN has in recent years gradually listed cross-border scams as a regional priority issue, but law enforcement cooperation still lags behind the criminal syndicates.
Sims noted that the resilience of scam syndicates lies in the fact that law enforcement usually focuses on raiding scam compounds, but does not tackle the underlying architecture: political protection, financial systems, and technology support.
He believes that although there has been progress in cooperation among ASEAN member states, it is still constrained by the principle of sovereignty and political realities.
'What’s really needed is a network-centered cooperation model—one that can synchronously track people, money, companies, domains, gazettes, and intermediaries across different judicial jurisdictions.'
Franceschini also said that ASEAN has set up working groups and established best practice guidelines, but cross-border law enforcement remains the greatest bottleneck, and real-time intelligence sharing is still extremely limited. 'Many law enforcement officers have told me that getting information from other jurisdictions is very difficult and often takes months, while scammers can communicate in a matter of minutes.'
He also emphasized that people who were tricked into working at scam compounds should be viewed as victims; many are left stranded and isolated after the compounds are dismantled. Authorities should face up to this problem and 'provide assistance, a way home, and follow-up support' for these people, and work with them to track down human traffickers and scam ring leaders.
Franceschini is a co-founder of the non-profit organization EOS Collective, which focuses on the investigation and research of cross-border crime, and provides assistance to relevant victims.
According to data from Thai human rights organizations, there are still over 5,300 people trapped in scam compounds on the Thai-Myanmar border, showing that regional crackdowns have not yet completely dismantled the scam networks.
Melinda, a researcher at the ASEAN Studies Centre of the Yusof Ishak Institute for Southeast Asian Studies, pointed out in an interview that transnational fraud has become one of the region's most concerning geopolitical issues—surpassing even South China Sea security concerns.
She said that in recent years ASEAN has strengthened regional cooperation, including passing a declaration in 2023 to combat technology-enabled human trafficking, and is promoting enhanced cooperation among member states in law enforcement, intelligence sharing, victim protection, and judicial cooperation.