SpaceX Disables Over 2,500 Starlink Devices Amid Crackdown on Myanmar Scam Centers

SpaceX has terminated service to upwards of 2,500 Starlink internet devices reportedly used by scam operations in Myanmar, as confirmed by a company executive on October 22. This development follows revelations that these terminals have been widely installed across sprawling scam compounds targeting foreigners through romance and business fraud schemes amid Myanmar’s ongoing civil conflict.

These fraudulent networks have flourished along Myanmar’s loosely controlled borders, exploiting the chaos of war. A notable government crackdown that commenced in February resulted in the repatriation of approximately 7,000 workers and prompted Thailand to impose a cross-border internet blockade. Despite these measures, investigations revealed that construction of scam hubs continues unabated, with Starlink devices increasingly connecting these operations to Elon Musk’s satellite internet service.

Lauren Dreyer, SpaceX’s Vice President of Starlink Business Operations, confirmed via a post on X that the company "disabled over 2,500 Starlink Kits in the vicinity of suspected 'scam centers'" within Myanmar. The exact timing of this disconnection was not specified.

The online scam industry across Southeast Asia has escalated sharply, defrauding victims out of an estimated $37 billion in 2023, according to a report from the United Nations Office on Drugs and Crime. In recent actions, Cambodia deported 64 South Korean nationals accused of involvement in these scams, and Thailand’s Deputy Finance Minister Vorapak Tanyawong resigned amid allegations tying him to Cambodia-based cyber fraud networks.

Myanmar’s border regions with Thailand and China have become hotbeds for these fraudulent enterprises, where some workers are trafficked or deceived, while others participate willingly. Before February, Starlink’s usage was minimal in Myanmar, but from early July through October, it ranked as the dominant internet provider according to the Asia Pacific Network Information Centre (APNIC). However, after detecting irregularities, APNIC announced plans to gradually eliminate data related to Starlink in Myanmar and 19 other countries, citing potential overestimations in usage.

In recent enforcement measures, Myanmar’s military junta reported a raid on KK Park, one of the most notorious scam centers, seizing a small number of Starlink terminals. On-site witnesses described chaotic scenes as over 1,000 people fled the area following military arrival. Observers note that the junta appears to balance between suppressing these operations to appease China, which opposes the scams, and allowing militias benefiting financially from them to continue.

Analysts like Nathan Ruser from the Australian Strategic Policy Institute characterize the military’s approach as largely symbolic, with minimal substantial impact. Additionally, residents near the Thai border observed KK Park to be largely deserted during the evening following the reported raid.

Erin West, a former U.S. cybercrime prosecutor turned anti-scam campaigner, remarked on the limited effect of such crackdowns: "If there is a crackdown at KK Park, this is a small portion of what’s happening at KK Park. And KK Park is a small portion of the number of compounds in the world that are doing this dirty business."

This latest action by SpaceX reflects growing efforts to disrupt the technological infrastructure enabling transnational scam networks in Southeast Asia, amid continued regional challenges in combating internet fraud.