Executive summary: SpaceX has disabled over 2,500 Starlink internet terminals in Myanmar that were being used by criminal syndicates operating scam centers, the company announced on Wednesday. This action aims to curb the widespread cyberfraud activities in the region.
SpaceX’s vice president of business operations for Starlink, Lauren Dreyer, made the announcement in a post on X, stating that the company proactively identified and disabled the devices near suspected scam centers. She emphasized that SpaceX works to identify violations in all markets and takes appropriate action, including collaboration with law enforcement agencies. The move comes after concerns were raised about the misuse of Starlink technology in remote areas where traditional internet infrastructure is lacking.
The scam centers, primarily located along the Myanmar-Thailand border, are involved in large-scale online fraud schemes such as romance and investment scams, often referred to as ‘pig butchering.’ These compounds house thousands of workers, many of whom are trafficked or lured by false job promises, and are forced to carry out scams under duress, with reports of beatings and torture being common. According to the Australian Strategic Policy Institute, about 30 sprawling compounds dedicated to scamming operate in the region, costing victims billions of dollars annually.
Starlink’s satellite internet service, which provides high-speed connectivity in remote areas, had been exploited by these criminal networks to maintain operations. An investigation by Agence France-Presse revealed that Starlink receivers were installed on a massive scale at these compounds, enabling them to bypass local internet restrictions and conduct scams efficiently. This technology allowed syndicates to operate from lawless zones along the border, shielded by Myanmar’s ongoing civil war and political instability.
Concerns about Starlink’s misuse have been raised by U.S. authorities for over a year, and the U.S. Congress Joint Economic Committee has initiated an investigation into the matter. The global scam industry is growing rapidly, with criminal groups leveraging technologies like artificial intelligence and cryptocurrencies to enhance their operations and evade detection, according to the UN Office of Drugs and Crime. This trend highlights the challenges in combating transnational organized crime in the digital age.
In response, Myanmar’s military junta has conducted raids on scam compounds, such as KK Park, where they discovered Starlink devices and arrested thousands of foreign nationals. However, experts like Jason Tower from the Global Initiative Against Transnational Organized Crime criticize these actions as largely symbolic, noting that many compounds continue to operate with minimal disruption. The junta’s efforts are often viewed as publicity stunts rather than genuine crackdowns, with limited impact on the lucrative criminal enterprises.
The persistent issue is fueled by Myanmar’s ongoing civil war and political instability since the 2021 coup, which create lawless zones where criminal networks can thrive. Regional efforts, including Thailand’s decision to cut electricity supplies to some areas and repatriate workers, have had limited success in dismantling the extensive scam operations. The complex geopolitical landscape complicates international responses, as corruption and weak governance hinder effective enforcement.
As the Association of Southeast Asian Nations convenes for a summit, addressing the scam center epidemic is likely to be a priority. The international community continues to urge more effective measures to combat human trafficking, financial crimes, and the abuse of technology in these regions. Future steps may involve enhanced cross-border cooperation, stricter regulations on satellite internet services, and support for victims, but lasting solutions require addressing the root causes of instability in Myanmar.