Telecom scamming (a.ka.a Zhapian) gangs have moved into a militia-controlled village in Laikha Township in Loilem District, central Shan State, and are reportedly recruiting young people for their operations, according to local sources.

The scamming gangs have begun operations near Manpang Village, approximately 40 kilometres from downtown Laikha, in an area controlled by the Manpang pro-junta Militia group which is providing security for the gangs, according to a political analyst.

He said: “The Zhapian operations have moved into territory controlled by the Manpang Militia, which is now providing them with security. When the gangs recruit staff from villages in Laikha Township the Manpang Militia handles the transportation of these recruits, allowing the Zhapian leaders to stay uninvolved in the process.”

The scam gangs primarily recruit young people under the age of 20 to work on the scams but they are also employing support staff, such as cooks, for their operations.

“Zhapian gangs are recruiting operatives for their businesses, as well as cooks to support their staff. When about 10 recruits have gathered in one place, members of the Manpang Militia come to collect them in groups. Many young people from downtown Laikha have also joined these gangs,” said the analyst.

Many residents of Shan State have recently been facing financial hardships due to fighting and the recent devastating floods caused by the tail-end of Typhoon Yagi hitting Myanmar in the second half of September. Their situation is also being made worse by a shortage of jobs in Shan State and rising commodity prices. Under these conditions, the money being offered by the scam gangs can be very tempting for people suffering such hardships.

For support jobs, such as cooks, the scam gangs pay about 1 million MMK a month. A 30-year-old woman from Laikha told SHAN that she was worried that young people might be tempted by. the financial incentives being offered by the scam gangs.

She said: “It is very concerning that young people can be lured by these criminal gangs with the promise of money. Furthermore, the mere presence of these gangs poses a significant threat to the safety of local communities.”

When the Three Brotherhood Alliance launched ‘Operation 1027’ in October 2023 in northern Shan State, one of its objectives was the complete eradication of scam gangs. Though the Three Brotherhood Alliance managed to remove the gangs from the areas it took control of, it did not eliminate them. Instead, the scam gangs just moved to other areas and continued their operations.

Previously, many scam gangs were located in border areas of northern Shan State next to China, but few remain in those areas following fighting and crackdowns on the gangs. According to observers many of the gangs have relocated to territory in southern Shan State held by the junta or junta-aligned militias.

“When the war intensified in northern Shan State, it became increasingly difficult for Zhapian gangs to continue their operations. As a result, they relocated to junta-controlled areas and territories held by junta-aligned militia groups in southern Shan State,” said the aforementioned political analyst.

He also urged parents to stop their children from getting involved in scam gangs. He warned that though the financial opportunities offered by these gangs might seem appealing, there are underlying complexities that are not immediately obvious which could put their lives at risk.

He said: “When it comes to Zhapian operations, most people prioritise the money [they can make] and overlook the underlying dangers. Once individuals become involved in the Zhapian businesses, they may find themselves trapped by these gangs, making it extremely difficult to escape unharmed in certain situations. That’s why I strongly advise young people to avoid getting involved with Zhapian gangs, as it is a dangerous path.”

The Manpang Militia is not the only armed organisation operating in Laihka Township. the Shan State Progressive Party/Shan State Army (SSPP/SSA), and the Restoration Council of Shan State/Shan State Army (RCSS/SSA) also have a presence in the town.

Political activists say that the reason the scam gangs have survived despite facing intense crackdowns is because they are supported and protected by armed groups, such as the Manpang Militia.