Organised Crime and Regional Political Dynamics: Examining Factors Driving Chinese Telecom Fraud in Southeast Asia

• In Event: WG Organized Crime and Criminal Networks Panel 3. Organized crime in the digital age

Abstract

Chinese-led telecom fraud networks in Southeast Asia exemplify a potent blend of transnational organised crime and regional political intricacies. The January 2025 Wang Xing Incident casts a spotlight and drastic law enforcement operations on sophisticated scams targeting Mandarin-speaking victims in different countries, thriving amid weak governance, porous borders, and economic instability. This paper probes the operational drivers of these networks, dissecting how criminal enterprises, local political structures, and transnational forces enable their enduring presence across Southeast Asia.

Employing thematic analysis, this paper draws on Chinese government publications, court judgments, and major media, translated into English and analysed via MAXQDA software. Four pivotal themes emerge: governance vacuums fostering impunity, socioeconomic vulnerabilities fuelling recruitment, transnational infrastructure amplifying reach, and emerging technologies—AI, cryptocurrency, and social media platforms—supercharging operations. Youth unemployment in China and regional accessibility supply labour, while lax enforcement and corruption in unregulated zones, like Myanmar’s militia-tied Myawaddy or Cambodia’s Chinese-funded casino hubs, provide safe havens. ASEAN’s non-interference policy and uneven state capacity entrench these syndicates, with China’s economic sway amplifying opportunities.

Findings suggest how these networks, raking in billions annually, exploit advanced tools: AI refines scams, cryptocurrency obscures transactions, and social media platforms broaden victim pools. Myanmar’s post-2023 Kokang border shifts and Cambodia’s economic enclaves anchor operations, while the Wang Xing Incident underscores a crisis—hundreds of thousands trapped, billions lost—rooted in structural enablers. This paper contends that countering this threat hinges on dismantling these facilitators, from governance gaps to tech-driven adaptability, beyond short-term crackdowns. By offering a nuanced analysis of these operational pillars, it delivers critical insights into disrupting telecom fraud’s regional foothold, advancing the global discourse on transnational crime in the digital age.

Authors

• Leo S.F. Lin, Charles Sturt University, Australia

• Geberew Mekonnen, Charles Sturt University, Australia

• Duane Aslett, Charles Sturt University, Australia

• Douglas M.C. Allan, Charles Sturt University, Australia