According to The Economist’s new podcast series, Scam Inc is a vast network of online fraud operations.
The series highlights how cybercriminals use increasingly sophisticated schemes to steal billions, with scams that are becoming harder to police, arguing that the sector has become more damaging than the illegal drugs trade.
One such scam, known as pig butchering (sha zhu pan in Chinese criminal slang), involves criminals gaining victims’ trust over weeks or months before pressuring them to invest. Once victims, or ‘pigs’, are fully exploited, the scammers take everything—often targeting their families and friends as well – ‘butchering the pig’.
The fraud industry is expanding rapidly. In Singapore, scams are now the most common crime. The UN estimates that in 2023, nearly 250,000 people in Cambodia and Myanmar were involved in scam operations. Meanwhile, The Economist reports that other estimates suggest up to 1.5 million workers globally in the sector.
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The cases highlighted included a Minnesota man who lost $9.2 million and a Kansas bank CEO who embezzled $47 million under the guidance of a fake online persona named “Bella.”
In contrast to drug cartels, scam networks operate as decentralised entities. These criminal organisations focus on various
functions such as locating victims, guiding them to invest in cryptocurrencies, or laundering illicit funds. Numerous scam centres are situated within heavily fortified facilities, where trafficked individuals are coerced into committing fraud under the threat of violence.
In several nations, scamming has become an integral part of the economy. Countries like Cambodia, Laos, and Myanmar see cybercrime as a significant revenue stream. The Scam Inc podcast highlights Alice Guo, a Chinese national who became the mayor of a small town in the Philippines and established a sprawling scam operation comprising 30 buildings, which processed over $400 million from 2019 to 2024.
The series posits that advancements in technology are complicating efforts to combat fraud. Criminals now employ sophisticated malware to extract confidential information, utilise deepfake AI to mimic the identities of victims’ acquaintances and exploit cryptocurrency for untraceable financial transactions. A case in Hong Kong illustrates this issue, where an employee at engineering company Arup was deceived by a deepfake video featuring his colleagues, leading him to transfer $25 million.
Recently, Thai beauty queen Charlotte Austin fell victim to an AI-driven scam, losing $118,000.
The Economist notes that governments are finding it challenging to keep pace with these developments. The publication states, “To combat scammers effectively, authorities must establish their networks.”
It emphasises that “Currently, many police forces that allocate substantial resources to fighting drug trafficking regard scamming as a mere annoyance and view victims as fools. Instead, they should collaborate with banks, cryptocurrency exchanges, internet service providers, telecommunications companies, social media platforms, and e-commerce businesses.”
The Scam Inc. podcast emphasises the importance of global collaboration. Given that numerous scam leaders are based in mainland China, The Economist contends that the United States and China need to join forces to effectively address the worldwide scamming industry.
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