Following “Operation 1027,” online financial scam syndicates once concentrated along the Myanmar-China border have dispersed deeper into Shan State, with operations emerging in southern and eastern areas, according to local reports.

Data compiled from the military regime’s state-run Myanma Alin newspaper show that authorities carried out at least 46 raids targeting suspected scam operations across Shan State between January and August 27, 2026. More than 2,400 people were arrested, including over 2,000 Chinese nationals, more than 360 Myanmar citizens, and individuals from Vietnam, Malaysia, the Philippines and Taiwan.

While cyber scam networks were previously concentrated in the Kokang, “Wa” and Mongla areas along the border, they have increasingly spread westward across the Salween River. New scam hubs have reportedly emerged in northern Shan State, including Mongyai, Tangyan, Hsipaw and Kyethi, as well as in southern Shan State, including Laihka, Kunhing and Nansang, and in Tachileik on the Thai-Myanmar border.

Although Chinese Foreign Minister Wang Yi said in March 2025 that cyber scams had been completely eradicated, Shan political researcher Sai Wan Sai said the claim amounted to little more than state-level rhetoric.

“The Chinese Foreign Minister’s announcement that cyber scams have been completely rooted out is just state-level propaganda. Eradicating this entirely is impossible because it has evolved into a massive, multi-branched international criminal syndicate that is either globally interconnected or operates in independent nodes,” Sai Wan Sai told SHAN.

Political analysts say the ability of scam syndicates to establish and operate heavily fortified compounds housing hundreds of people would be difficult without some degree of complicity, protection or financial benefit involving military regime forces and certain ethnic armed organizations (EAOs).

“The Myanmar military has historic ties with former Kokang authorities now facing action in China, as well as with Karen-Thai border groups like the DKBA, BGF and KNA. Therefore, it is no surprise that these things happen inside military-controlled territories. It is clear that both EAOs and the Myanmar military are involved in these financial scam operations in one way or another,” Sai Wan Sai said.

He added that authorities and armed groups are increasingly dependent on illicit revenues generated by scam operations, which have become part of a lucrative regional “war economy.”

Despite efforts to restrict their operations, the syndicates continue to use advanced technology to maintain their networks. During the eight-month enforcement period, authorities seized more than 140 unauthorized Starlink satellite internet terminals reportedly used by the compounds.

Sai Wan Sai compared the evolution of cyber scams to the historical shift in the region’s illicit drug trade from opium to stimulant pills.

“This issue is much like the historical transition of smuggling from opium to stimulant pills. Now, cyber scams have similarly mutated and spread. Because this is a transnational crime, it will severely exacerbate regional instability and human trafficking crises,” he said.

The continued expansion of cyber scam networks poses a serious long-term threat to local communities and regional security. However, dismantling the networks remains difficult, particularly where powerful actors have financial interests in the illicit industry.