Behind millions of spam messages lies slavery: how fraudsters operate.

Rise of SMS Fraud

According to Vox: If you have a mobile phone, you have probably received such messages: an unknown recruiter sends you a friendly message about an incredible job opportunity promising huge earnings for minimal work. If it sounds too good to be true, it probably is — this is employment-related fraud.

If you feel like you are receiving these spam messages more often than before, you are not mistaken. These scams have increased significantly since 2020, and the reason is that they are effective. If you have fallen victim to such a scam, know that you are not alone. Last year, the Federal Trade Commission received nearly 250,000 complaints about text scams. Americans lost around $500 million because of this.

In a new episode of Explain It to Me, the weekly Vox podcast, we discuss the origins of these scams.

According to Meta Burgess, a writer on information security for Wired, these messages primarily come from a group known as the 'Smishing Triad'.

“They are one of the groups of fraudsters known as smishing syndicates. These groups use SMS to trick people into giving away their addresses, banking information, and other personal data. They reportedly send out 100,000 messages daily,” Burgess told Vox.

But those receiving these messages are not the only victims of these criminal organizations. People sending them often also fall victim to human trafficking. They are lured to Southeast Asian countries with promises of lucrative jobs, only to find themselves trapped and forced into fraud.

Victim Experiences

This has become apparent to Erin West, who has been a prosecutor in California for over two decades. After witnessing numerous scams, she decided to take action. West founded an organization called Operation Shamrock to inform people about scams. Since its inception, she has conducted investigations into fraud schemes originating from Cambodia, Myanmar, and other Southeast Asian countries. She noted: “This industry has turned Cambodia into a real scam country. Previously, their business was tourism and the textile industry; now, fraud constitutes 60% of their GDP.”

This is an industry that is effectively built on slave labor. West discussed what happens on the other end of the phone in the podcast Explain It to Me. Below is an excerpt from our conversation, shortened for brevity and clarity. You can listen to the full episode on Apple Podcasts, Spotify, or wherever you get your podcasts.

You spoke with some victims who were forced to work in such fraudulent establishments. What was their experience?

I met a Ugandan named Small Q. He worked at a cafe in Uganda and is 23 years old. One day he was offered: “I know you’re making $100 a month. I can offer you $1,000 a month to work in Bangkok doing data entry.” Small Q went through two rounds of interviews and, excitedly, learned he got the job, earning 10 times more than at home.

When he arrived in Bangkok, his phone and passport were taken from him, he was driven around for several hours, and then he found himself in a closed massive commune with large dormitories. Men with guns at the gates declared: “Now you are a fraudster. This is your job.”

“Financial victims do not understand that the people on the other side of the phone are also huge victims.”

And that’s true. In the premises where the frauds take place, people live in fear. This is a horrific aspect of the situation that people don’t realize. On the other end of the text, there is likely someone who has become a victim of human trafficking.

Horrors Inside Fraud Companies

You visited some of these premises. What do they look like?

These are huge 10-story buildings. Often with bars on the windows to prevent people from escaping. There are dozens of such places along the Moe River in Myanmar, hundreds in Cambodia, dozens in Laos. The scale of this phenomenon is simply shocking.

Who runs these establishments?

Chinese organized criminals benefited from road construction in Cambodia, but when the Covid pandemic began, the casinos were left empty, and they had to look for alternatives — so they started engaging in human trafficking.

What happens to people like Small Q after their arrival?

They are forced to live, working in a country they attempt to defraud. Each day, Small Q reports at a long table alongside others like him, forced to work on desktop computers with ten phones.

In these establishments, there are different roles. When you first arrive, you are one of those trying to find new clients. Over time, you move up to 'chat', where at the end of the day, you report to your boss about what you’ve managed to achieve.

That sounds pretty corporate.

I’m glad you noticed the corporate nature of all this. There is a real motivational system in place. If Small Q can trick someone and steal their money, it’s considered a major victory. Sometimes even fireworks are set off for major achievements. There are also entertainments like karaoke rooms that provide women, alcohol, and cigarettes. It’s a method of 'carrot and stick'.

What happens if these people do not meet their quotas? What is the “stick”?

It’s horrific. Small Q is not the only one I’m speaking to.

I spoke with another Ugandan, whom I will call Sam. If he does not meet his quota, he is not allowed to eat. He is beaten with an electric baton. For women, there are sexual consequences. There is a place called the 'dark room', where they are attached to a metal bar and beaten. Then they are put in a room where they are hung by their hands for three days. We’re talking about torture on a level of war crimes.

And all of this because they didn’t trick enough people, didn’t meet their quota?

That’s right.

How can you get out of one of these fraudulent jobs? It seems that you can’t just leave.

It is practically impossible. That is why they have managed to keep hundreds of thousands of people within these walls. They are assured that they can pay a ransom that can range from $3,000 to $20,000. If they manage to raise such an amount, there are ways in which their escape can be arranged.

In the end, Small Q managed to return home by stealing a phone from one of the bosses. He contacted Madam Betty Bigombe, the High Commissioner of Uganda, who helped him and 23 others return home. But the psychological burden is enormous.