In Johor, Malaysia, a city designed to accommodate 700,000 residents currently has a population numbered at less than 1% of that figure. This vast area has unfortunately become a haven for alleged scam syndicates.
The operations are located in two call centers spread across 27 apartments and five bungalows. Reports from the police indicate these syndicates are engaged in cryptocurrency investment and romance scams, primarily targeting individuals abroad.
In mid-July, Malaysian authorities took action, raiding these scam operations and arresting 335 individuals. They also confiscated assets valued at $245,000, which included electronic devices like phones, computers, and laptops. Among those arrested were 309 Chinese nationals, 19 Indonesians, three Malaysians, and four from Myanmar.
A resident of Forest City, Kevin, described the prevalence of scams as an "open secret," stating that the isolation of the ghost town provided the scammers with a secure environment where they could operate without disturbance.
John Wojcik, an analyst at TRM Labs that specializes in crypto-related crime, remarked, "The reality is that many of these organisations now resemble multinational corporations more than a traditional organised crime network or gang. They have dedicated recruitment teams, IT departments, money-laundering specialists and infrastructure."
Forest City, which was launched in 2016 by one of China’s largest property developers, Country Garden, was initially projected to be a $100 billion investment. The project has struggled due to a downturn in the Chinese housing market and the COVID-19 pandemic. Over a decade later, the area is now home to approximately 5,000 residents and has been labeled a ghost town.
This situation mirrors what happened in Laukkaing, a casino town on the Myanmar-China border, where four families transformed the once-poor town into a center for gambling and scams. After a crackdown by China in 2023, many scam workers there were taken into custody, and the leaders of the operation were arrested.
In contrast, the scam networks in Forest City remain under investigation. Malaysian authorities are actively seeking to identify the mastermind behind these call centers.
