China intensifies crackdown on cross-border telecom fraud with new guidelines
The new measures target key figures within these groups and those providing venues for illicit activities under the guise of "industrial parks".
China is ramping up its fight against cross-border telecommunications fraud with a fresh set of guidelines aimed at dismantling vast criminal networks and recovering stolen assets.
The new measures target key figures within these groups and those providing venues for illicit activities under the guise of "industrial parks", according to a joint announcement on July 26 by the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security.
This initiative follows a series of joint operations with local police in Southeast Asia aimed at shutting down scam compounds. A joint China-Myanmar operation between September and December 2023 led to the extradition of over 31,000 suspects, including 63 alleged leaders and key members of these criminal organizations.
These large-scale compounds, often managed by ethnic Chinese or Chinese nationals, operate across Southeast Asia and are responsible for conducting sophisticated investment and gambling scams, including the notorious "pig butchering" scams.
According to the UN, approximately 220,000 individuals are involved in these operations in Myanmar and Cambodia, with some reportedly being coerced into participation.
Initially targeting Chinese-speaking victims, these scams have expanded globally, contributing to a rise in reported cases worldwide.
Overseas efforts
In the first 10 months of 2023, China’s Supreme People's Procuratorate reported a 52% year-on-year increase in prosecutions related to telecom fraud, with more than 34,000 suspects charged.
This crackdown has particularly focused on ethnically Chinese kingpins who have operated in regions like northern Myanmar's Kokang Self-Administered Zone.
Among those apprehended were Ming Guoping, Ming Julan, and Ming Zhenzhen, while gang chief Ming Xuechang reportedly committed suicide before capture.
Other countries have also been trying to stamp out these operations.
High-profile arrests related to these operations have occurred beyond China.
In Thailand, a Chiang Mai police officer, Pol Lt Col Bandit Khonkan, was arrested at a temple last week for running a call center scam gang, according to the Bangkok Post.
His daughter and three others were also detained. Bandit claimed that Chinese partners were the real ringleaders.
One July 22, Philippine President Ferdinand Romualdez Marcos announced a comprehensive ban on Philippine Offshore Gaming Operators (POGOs), mandating their shutdown by the end of the year.
However, challenges persist. In Cambodia, a marketplace linked to Prime Minister Hun Sen’s cousin, Hun To, has been implicated in facilitating scam operations.
Hun To is a director of Huione Pay, has been found to enable suppliers of equipment for scam compounds and money laundering services to advertise through various Telegram groups and websites. Its escrow service, Huione Guarantee also facilitates payment transactions for these illicit activities.
Crypto wallets associated with Huione Guarantee and its merchants have processed over $11 billion since 2021, according to blockchain analytics firm Elliptic.
Recommended Reading:
On the fall of the Ming’s and Myanmar's Kokang Self-Administered Zone check out “The Chinese mafia's downfall in a lawless casino town” by Johnathan Head at the BBC.
For more on Huione and Hun To read “Huione Guarantee: The multi-billion dollar marketplace used by online scammers” from Elliptic.
Also check out the OHCHR’s August 2023 report on “Online Scam Operations and Trafficking into Forced Criminality in Southeast Asia”
You are more likely to be scammed in Hong Kong than be the victim of any other crime.
Last year, deception cases rose by 42.6% in the city to almost 40,000 cases and losses of HK$9 billion. Almost half of all reported crimes (44%) relate to fraud and scams.
Hong Kong isn’t alone. The situation here mirrors other places around the world. The US lost HK$78 billion to fraud last year. The UK lost HK$23 billion. Singapore lost HK$3.8 billion.
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