The Online Scam Industry Is Capitalism Built on Slave Labor

4 months ago 8
Interview by Chris Dite

It is estimated that more than 220,000 people labor in online scam compounds in mainland Southeast Asia. Lured to border cities under false pretenses, they are forced to work either as scammers targeting people abroad online, or in service or sex worker roles in the same compounds.

The slavery, sickening violence, and perceived lawlessness of the industry have forced governments in the region to respond. The kidnapping and enslavement of a young actor in 2024 became a cause célèbre on Chinese social media and led to his rescue in January 2025. In February, growing panic in mainland China, Hong Kong, and Macau about young people being kidnapped led to a dramatic escalation. The Chinese government coordinated with Myanmar and Thailand to raid border city compounds, rescuing around 7,000 people.

Despite the crackdown, the scam compound industry is still raking in hundreds of billions of dollars each year. It has grown immensely in complexity, potentially involving around six million people outside the compounds in facilitating the flow of money from scams.

In their new book Scam: Inside Southeast Asia’s Cybercrime Compounds, Ivan Franceschini, Ling Li, and Mark Bo delve into the structure of this powerful shadow industry. Seeking to move beyond sensationalist headlines and stereotypes, they conducted interviews with hundreds of victims of these scam compounds. Their research paints a grim picture of a growing aspect of contemporary capitalism.

Jacobin spoke with Franceschini, Li, and Bo about their work, and why we need a more nuanced understanding of what is happening in Southeast Asia.


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Contributors

Ivan Franceschini is a lecturer at the Asia Institute, University of Melbourne. His research focuses on ethnic Chinese transnational crime. He cofounded the Made in China Journal, the People’s Map of Global China, and Global China Pulse.

Ling Li is pursuing a PhD at Ca’ Foscari University of Venice. In the past few years, she has been providing support to survivors of scam compounds in Southeast Asia.

Mark Bo is an independent researcher with a background in corporate and financial mapping, which he utilizes to investigate stakeholders in the online gambling, fraud, and money laundering industries in East and Southeast Asia.

Chris Dite is a teacher and union member.

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