A growing network of online scam operations is spreading across the forested regions of southern Shan State, particularly in Laihka, Mong Kung, and Kyethi townships, according to local sources and investigators. These illicit activities, shielded by armed groups and local militias, are evading authorities and raising alarm among residents.

Since early 2025, scam centers along the Nam Taung (Nam Teng River) have multiplied, with hundreds of foreign nationals, mostly Chinese, reportedly engaged in illegal online gambling and cyber fraud.

“Between Kyethi and Laihka, at least 2,000 Chinese nationals operate these scams under armed group protection,” an anonymous resident told SHAN. “When authorities attempt crackdowns, they simply retreat deeper into militia-controlled territory.”

The Wan Pang village tract in Laihka Township has emerged as a key hub for these operations, effectively barring state officials from intervening. The area lies at the intersection of Laihka, Mong Kung, and Kyethi townships, a zone heavily influenced by the Shan State Progress Party/Shan State Army (SSPP/SSA).

Residents describe a fluid and elusive network: “The moment one location is exposed, they relocate to another village,” the source explained. “No one can stop them.”

After a major March crackdown in Nam Sang Township, where over 700 scammers were arrested, many detainees were allegedly transferred to Pang Hlan, a Mark Kieng militia-controlled area between Mong Nai and Nam Sang. Locals report that new scam operations have since resurfaced in Mong Nai.

In a June 10 directive, the SSPP reiterated its ban on members participating in drug trafficking, online scams, and arms smuggling, warning of disciplinary action and potential extradition to Myanmar or Chinese authorities. However, sources indicate that enforcement remains weak, with some groups continuing operations in remote areas.

Despite official denials, the persistence of these syndicates highlights the challenges of combating organized cybercrime in conflict-affected regions.