28 April 2026 By Naing Yarzar Min
YANGON, Myanmar — Major mobile telecommunications operators in Myanmar, including Atom and MPT, are facing mounting criticism from tech experts and insiders for their alleged failure to effectively crack down on the “Kyat Phant” (online scam) syndicates that use their networks to defraud thousands of people.
Industry experts claim that the high volume of calls and SMS messages generated by these scam gangs provides a significant revenue stream for operators, leading to a “perverse incentive” to turn a blind eye to obvious fraudulent activity.
Scam syndicates typically operate using “SIM Boxes”—devices that can hold hundreds of SIM cards simultaneously, allowing them to blast thousands of calls and messages to potential victims in seconds.
“While operators can theoretically block these numbers once detected, the syndicates are able to rotate new SIM cards into their systems within seconds,” an employee at a local mobile carrier explained to MPA. “From a business perspective, the constant churn of new cards and the massive traffic they generate is highly profitable. Some believe the operators aren’t doing more because they don’t want to lose that money.”
Internal sources suggest that carriers also fear the impact of mass-deactivating accounts on their “churn rate”—a key metric of company stability. Deactivating tens of thousands of cards used by syndicates would result in a sudden drop in active user statistics, potentially affecting the company’s valuation and market standing.
“Selling a SIM card isn’t where the real profit is; it’s the long-term usage of voice and data,” a sales representative said. “If the operators effectively shut down these operations, they lose not only the traffic revenue but also face high administrative costs and potential fines if the authorities prove their cards were used in crimes. It’s a delicate balancing act for them.”
The impact of this corporate hesitation is felt most acutely by the victims. Former members of scam gangs told MPA that uninterrupted service is vital for building trust with a “target.” If a SIM card remains active throughout the scamming process, it significantly increases the success rate of the fraud.
“Lying to someone takes time,” a former syndicate worker explained. “If the card gets blocked halfway through a conversation, the connection is lost and the scam fails. Reliable service makes our ‘work’ much easier.”
Despite regulations requiring all SIM cards to be registered with a National Registration Card (NRC), pre-registered cards remain widely available on the black market. Critics argue that until telecom giants implement more sophisticated AI-driven detection and stricter biometric registration, Myanmar’s digital landscape will remain a playground for international scam syndicates—and a goldmine for the companies that host them.
