Recent investigations reveal that scam texts, including “wrong person” scams and E-ZPass scams, are linked to Myanmar warlord Saw Chit Thu and the Karen National Army. The U.S. Treasury Department has sanctioned him for facilitating large-scale cyber fraud and human trafficking, with Americans losing around $3.5 billion to these schemes in 2023. The treasury plans to freeze assets and prohibit business interactions while also targeting a Cambodian network tied to North Korean cybercriminals.
Over the weekend, we reported on a troubling trend of “wrong person” scam texts. These seemingly innocent messages can quickly spiral into serious cryptocurrency scams. Additionally, many drivers across the U.S. are receiving scam texts related to E-ZPass tolls. Recent developments shed light on the origins of these scams, revealing some rather unsettling connections.
On Monday, May 5, the U.S. Treasury Department took action, announcing sanctions against Myanmar warlord Saw Chit Thu, along with his two sons. The Treasury claims they are at the helm of wide-ranging cyber fraud and human trafficking networks. Specifically, Saw Chit Thu and the militia he leads, the Karen National Army (KNA), are alleged to run multibillion-dollar crypto scams primarily targeted at American victims.
According to the Treasury’s statements, the KNA has been profiting significantly from cyber scams. They lease controlled land to organised crime groups and provide support for human trafficking and smuggling operations. The U.S. Treasury pointed out that the infrastructure established by these groups fuels the rampant cyber fraud activities taking place.
Money lost by Americans to scams this year is estimated at around $3.5 billion. This staggering figure underlines the scale of the problem and the severity of such scams as they continue to ensnare unsuspecting individuals. Saw Chit Thu leads the KNA, a militia in Myanmar’s Kayin State, and operates within a so-called “Special Economic Zone” near the Thai border.
Within this zone, the KNA has been leasing lands and providing protection to various transnational criminal organisations running “scam compounds.” As understood from U.S. Treasury officials, these compounds are heavily fortified locations where trafficked individuals are forced into conducting online scams.
The focus of these scam operations is primarily on cryptocurrency scams, which can be particularly treacherous. According to the Treasury’s press release, scammers lure victims by showcasing the allure of a wealthy lifestyle, coaxing them into investing in fictitious cryptocurrency and trading platforms. Victims are often shown impressive yet fake returns on their investments, leading them to invest more, only for the scammers to disappear once they have extracted all they can from their victims.
The repercussions of these sanctions are significant, as they will freeze any U.S.-based assets of Saw Chit Thu and his family. They also prohibit Americans from engaging in business with them. Notably, the U.K. and European Union have already put their own sanctions in place regarding these activities.
Additionally, the Treasury Department indicated plans to impose sanctions on a network based in Cambodia that has been accused of laundering money for North Korean cybercriminals. This group is also linked to various fraud operations, including pig-butchering scams, throughout Southeast Asia, as reported by Bloomberg.
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