Why a Warlord in Myanmar Is Responsible for That Scam Text on Your Phone

The US is trying to hit back at online fraudsters by cracking down on a military leader in Asia who’s allegedly fueling and profiting from the cyber scams. 

The Treasury Department today announced sanctions against Saw Chit Thu and his military group, the Karen National Army (KNA), in Myanmar. 

Saw Chit Thu has been described as a “kingpin” and “scam emperor” over allegations that he controls facilities in Myanmar dedicated to running online fraud schemes. This has included helping Chinese investors build casinos and cyber-scam compounds on the border between Myanmar and Thailand, with Saw Chit Thu receiving a cut of the profits. 

These scam compounds, which use forced labor, according to the United Nations, can run a wide variety of fraud schemes — many targeting unsuspecting users in the US. Also known as “pig butchering,” the scams often focus on building a rapport with the victim before tricking them into investing in get-rich quick schemes, such as fake cryptocurrency projects. To reach US users, the scams centers in Asia will create fake social media profiles or circulate harmless-looking SMS texts. 

The Treasury Department sanctioned Saw Chit Thu, along with his two sons, “for their role in facilitating cyber scams that harm US citizens, human trafficking, and cross-border smuggling.” 

“Although statistics vary, American victims of cyber scams like the ones emanating from Burma (also known as Myanmar) have collectively lost billions of dollars over the last three years,” the Treasury Department says. 

Federal officials also allege that Saw Chit Thu and the KNA are fueling scams “on an industrial scale,” by leasing the land they control to criminal groups. “The KNA also provides security at scam compounds in Karen State,” the Treasury Department noted. “Survivors from KK Park—an infamous scam site—who were coerced into forced criminality to commit cyber scams have reported that the uniforms of soldiers guarding the compound bore the insignia of the KNA.” 

In response, the sanctions bar US persons and businesses from conducting business transactions with Saw Chit Thu and his militia, potentially cutting the group off from the world banking network. In addition, the Treasury Department last week moved to blacklist the Cambodian financial company Huione Group for allegedly laundering funds for scam proceeds from Asia and North Korean hackers. 

The news is a reminder to be careful if you receive a text from a random person. The Treasury Department added: “Initially, scammers exploit victims’ vulnerabilities like recent breakups, bereavement, or financial hardship and, in some cases, employ attractive models to assuage victims’ apprehension with the occasional video chat.”

About Michael Kan

Senior Reporter

I’ve been working as a journalist for over 15 years—I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017.

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