Blake Dowling: Inside the scamdemic

Cybercrime encompasses a wide range of fraudulent activities today, including bogus emails, fake texts, gift card scams, cryptocurrency fraud, and fake job postings. The list of scams is longer than a Ken Follett novel.

What many may not realize is that a significant number of the criminals involved are also victims themselves, trapped in a horrific reality known as scam factories.

Imagine you are job hunting and come across an enticing online post for a high-paying customer service position in Southeast Asia that requires only English language skills. After an interview, you land the job, travel there, and find yourself locked in a cell, forced to train as a scammer. You receive no pay, endure abuse and, in some cases, torture, while your “job” consists of scamming others through texts and emails.

If you have ever received a text from an unknown number that begins with “Sorry, I missed our appointment,” it could be from one of these scammers. They can maintain a con for days, weeks, or even months, managing hundreds of schemes simultaneously while they are in cyber slavery.

The nature of the scams varies. Once a victim responds to one of these texts, the scammer may claim to be trapped in another country without a passport, struggling to pay for their education, or a retired financial advisor eager to share cryptocurrency advice. These are commonly referred to as romance scams or investment scams. Other types include debt relief, fake charity, and fake job scams, all of which fall under the umbrella of “pig butchering” scams, aimed at draining victims’ life savings.

The term “pig butchering” describes the scammer’s process: they find a victim (the pig), fatten them up with emotional manipulation or false promises, and then butcher them financially. These factories often employ models to lend credibility to their cons (especially in romance scams). For instance, if a victim doubts they are speaking with a genuine person, a model may be brought in for a video call before the scam continues. It is a devious and brutal operation. For more information, you can check out this deep dive from our friends in Australia.

Many of these scam factories are located in Myanmar, a country currently grappling with civil war and lawlessness, where militias allegedly protect such criminal enterprises. Reports indicate that these factories began emerging around 2016 but surged in 2020 when regional casinos closed, leading organized crime to repurpose these casinos into call centers staffed by trafficked individuals.

While these scam centers operate globally, their primary targets are often in the United States. Consequently, the U.S. government has launched a campaign against these criminals. Recently, a Scam Center Strike Force was formed to combat this issue.

This task force comprises personnel from the DOJ, FBI, Secret Service, and the U.S. Attorney for the District of Columbia. They will collaborate with international law enforcement, and the Strike Force Crypto Seizure team has already confiscated $401,657,274.33, according to reports.

Additionally, their efforts, along with others, have led to the closure of some of these facilities. The Chinese government has also taken significant action, shutting down operations and issuing death sentences to five members of one crime family involved, while jailing many others.

There is much to consider here, but the bottom line is that it is time for all of us to take action against these scams, for the victims trapped in these factories and for the potential victims still to come.

The sooner we stop falling for these scams, the quicker the money will dry up, and this battle against cybercrime can be won. Talk to your family, friends, and colleagues, and ensure they understand that these scams often begin with a simple text. Please encourage them to delete such messages and not to engage with them.

By closing these factories, we can move past the dual-edged issue of cyber victimization and address the ongoing scam epidemic.