Scam Industry’s Exploitation of Technology

Safeer Mohammed Koorimannil, trafficked to a scam center in Myanmar, had clear instructions: make victims fall in love within four days. Posing as Ella, a 28-year-old Singaporean woman, he operated online, juggling chats with more than 100 people simultaneously, monitored closely by supervisors wielding electric batons. Over a month, he targeted around 50,000 individuals across 17 countries, including a widowed tailor in Kurdistan, a pastry chef in Turkey, and several others from diverse backgrounds.

Koorimannil’s work was powered by software utilizing AI models from American tech companies, streamlining scams. This technology, exploited for fraud on an unprecedented scale, raises concerns about tech companies’ enforcement of their terms of service prohibiting illegal activities like fraud. According to the Federal Trade Commission, scams cost Americans nearly $200 billion in losses in 2024.

The technology from American companies plays a crucial role in the industrialization and globalization of fraud.

The investigation by AP and FRONTLINE highlights that the backbone of fraud extends beyond social media platforms. It reaches into the digital supply chains, connecting scammers to victims. Scammers utilized AI models, satellite dishes, and internet service providers to operate efficiently in Myanmar. American-made AI tools, specifically ChatGPT and Gemini, have been misused to create software that aids scammers globally. These tools facilitated seamless operation across multiple languages, enhancing surveillance and targeting capabilities.

AI companies like OpenAI and Google claim to disrupt abuse proactively; however, the legal and regulatory framework lacks robust deterrents. Sam Altman, CEO of OpenAI, compares AI models to utilities like electricity or water, responsible for their consumer’s safety. Yet, unlike utilities, tech companies in the U.S. lack responsibility for content safety.

The integration of sophisticated global internet infrastructure to support Myanmar’s scam economy is evident. Services from providers like Cogent Communications, AT&T, DigitalOcean, and Oracle among others facilitate scam operations. Starlink, despite facing criticism, remains a top internet provider, enabling access to scam centers.

The abuse of these systems has led to significant financial losses and personal tragedies. One example is Chris Colocousis, who lost $400,000, a substantial portion of his retirement savings, to a well-coordinated scam. This highlights the alarming sophistication and reach of scam networks. Internet service providers play a critical role, as scam traffic often involves U.S.-based infrastructures.

In response to this growing threat, coordinated efforts to tackle scam networks have emerged. Washington’s response includes initiatives like the Scam Center Strike Force, disrupting more than 1.4 million accounts linked to scams. Legislations in countries like the UK, EU, and Australia have started imposing regulations requiring companies to prevent scams actively.

The ongoing issue reflects a broader challenge in addressing the exploitation of tech for scams. Enhanced regulation and cooperation among tech companies, law enforcement, and policymakers are essential for mitigating risks and protecting potential victims globally.

Despite some actions taken by companies, the complexity and profitability of the scam industry remain significant hurdles. The demand for accountability from American tech companies is crucial as scammers continue to adapt and exploit available technologies.