DOJ Targets Starlink to Disrupt Satellite Internet in Fraudulent Operations

As fraudulent schemes in Southeast Asia continue siphoning off billions globally, US law enforcement is taking action, issuing warrants to confiscate Starlink's satellite internet stations that provide connectivity to these schemes. Documents accessed by WIRED reveal how these Starlink systems are allegedly facilitating criminal scams based in Myanmar.

A warrant authorized by US Magistrate Judge G. Michael Harvey demands the seizure of nine Starlink systems and two associated accounts tied to scam sites in Payathonzu, near Myanmar's border with Thailand at Three Pagodas Pass. The FBI notes in the affidavit that these Starlink terminals have been instrumental in alleged fraudulent financial activities and wire transfers targeting US citizens, recommending SpaceX to terminate connectivity to these terminals. Investigators detected at least 26 Starlink dishes mounted on the rooftops of buildings forming part of a scamming hub in the area.

Another related legal document, not directed at Starlink but focusing on illicit websites, reports that upwards of 79 Starlink dishes reside atop structures at the Tai Chang compound, linked to the Democratic Karen Benevolent Army, recently mentioned by US authorities. This warrant came from US Magistrate Judge Matthew J. Sharbaugh.

Both sets of legal actions reference a WIRED investigation from earlier, which highlighted the extensive use of Starlink for internet access in these contexts. Starlink, a satellite internet service by Elon Musk's SpaceX, operates in over 150 countries globally.

These actions are part of the US's new initiative, the District of Columbia Scam Center Strike Force, launched by the Department of Justice alongside the FBI and Secret Service. This project aims to neutralize cryptocurrency scams victimizing Americans, particularly those originating from structured fraud operations prevalent in parts of Southeast Asia and often linked to Chinese criminal networks. Thus far, the task force has appropriated $400 million in illicit cryptocurrency.

US Attorney Jeanine Pirro emphasized the Justice Department's firm stance against organized crime affecting American citizens’ investments. She detailed the seizure of websites operated by these networks in Southeast Asia and discussed the effort to detach Starlink terminals that scammers use for internet access, noting US victims’ financial contributions to fraudulent investments.

In response to WIRED’s inquiries regarding these warrants and potential device deactivation, SpaceX did not provide comments. However, by late October, Lauren Dreyer, Starlink’s VP of Business Operations, indicated they had proactively identified and disconnected over 2,500 Starlink units in the proximity of scam centers in Myanmar. The accounted alleged satellite internet use in Myanmar has since decreased significantly.

FBI affidavits point out that Starlink connections at the Three Pagodas Pass are implicated in a crypto scam branded “Wealthob.” From January 2017 to November, 22 complaints surfaced, reporting a total consumer loss exceeding $6.7 million. Victims received deceptive messages, leading to communication shifts to platforms like WhatsApp or Telegram, which furthered fraudulent investments.

Investigations credited SpaceX and WhatsApp’s owner Meta for data linking the scammers' numbers to Starlink equipment. The filings recognized the existence of nine specific Starlink setups within the Three Pagodas Pass site, all connected to accounts registered in the Philippines.

Despite reaching out, Meta hasn't responded about its association with the discovered scam centers beyond 2024.

Documents suggest that the scammed individuals are tricked into sending investments abroad under false pretenses, facilitated by Starlink’s internet service. The affidavit demands SpaceX incapacitate these Starlink accounts by cutting off their network access.

A Justice Department representative, when asked about the possibility of physical confiscation of Starlink terminals in Myanmar, stated they cannot comment on open investigations but highlighted Starlink's obligation to terminate device connectivity as per the warrant.

Scams leveraging technology have become increasingly organized and profitable, primarily in Southeast Asia, involving enforced labor to run operations reportedly linked to Chinese syndicates. Techniques have escalated, employing AI and deepfake technologies for more persuasive schemes.

John Wojcik, a senior researcher at Infoblox, notes a surge in Starlink terminals reaching scam hotspots following telecom infrastructure crackdowns, significantly impacting Myanmar. He argues that the Strike Force indicates a growing emphasis by governments on combating these widespread fraud enterprises.

While local authorities in Myanmar and Cambodia have raided certain scam centers, many continue unchecked. In February, Thai law enforcement faced difficulties while targeting nearby scam centers in Myanmar. Recently, over 10,000 individuals were reported missing within Myanmar's borders as related sites suffered partial destruction, though questions linger about their effectiveness.

A February study by WIRED analyzed mobile data, finding repeated connectivity instances with Starlink in scam locations. Following this, Senator Maggie Hassan contacted SpaceX’s Musk regarding the use of Starlink hardware in scam networks.

“SpaceX holds a duty to prevent the misuse of its service against Americans,” emphasized Hassan.