By Ra Wai / MPA
At least 10 residents in Myanmar’s Yangon region have been arrested by the military council after their identity cards were used to open bank accounts for online fraud syndicates, known locally as “Kyar Phant”.
The arrests in Kayan Township follow a recruitment scheme during the 2025 rainy season, where agents working for the gangs reportedly offered locals 30,000 kyat (approximately $6-9 USD) in exchange for photographing their National Registration Cards (NRCs).
According to Kayan Channel, a local information group, these identities were then used to set up mobile banking accounts—specifically on platforms like KBZ Pay and Wave Pay—to facilitate money laundering and illicit transactions.
The military administration has now begun tracking down and arresting the registered owners of these accounts after high transaction volumes triggered security flags.
“The arrests started recently and are focused on residents within the town,” a spokesperson for Kayan Channel told the Myanmar Pressphoto Agency (MPA).
“They are still holding people in custody. Unlike other cases, families have not been able to secure their release even by offering money.”
The scam ring reportedly targeted vulnerable groups, including the elderly and daily wage labourers who were unaware of the legal risks associated with digital fraud. Agents would often set up the accounts in front of the victims immediately after photographing their IDs.
“Kayan has many manual labourers who are unfamiliar with modern fraud techniques,” the spokesperson explained. “They thought they were getting 30,000 kyat for free just by sitting at home, so they agreed to it.”
While Wave Pay accounts are reportedly under investigation, the current wave of arrests has been triggered primarily by blacklisted accounts on KBZ Pay.
