Thailand has stepped up its campaign against financial scams, deploying stringent measures that, while targeting criminal activity, have inadvertently affected innocent depositors.
The recent policy of freezing suspicious bank accounts has drawn both praise for its effectiveness but also criticism for the damage it causes.
“We will not back off; we have to go head on and crack down on financial frauds, as it has a serious impact on those who lose money,” Bank of Thailand Governor Sethaput Suthiwartnarueput has vowed.
His assertion came in response to public complaints about bank accounts being frozen without clear justification. Thai authorities, including the police, have increased efforts to disrupt criminal networks that lure individuals into making fraudulent transfers.
The widespread freezing of so-called “mule accounts” has become a key tactic in this campaign.
Criminal gangs often recruit people to open bank accounts—known as mule accounts—which serve as conduits for laundering illicit funds and evading official scrutiny.
As a result, authorities have ramped up monitoring and enforcement, freezing suspicious accounts as a preventative strategy.
Impact on ordinary citizens
The aggressive freeze measures have a downside. Some people have found their accounts mistakenly frozen, disrupting their daily lives and financial stability. Sethaput acknowledged these unintended consequences.
“We regret that some innocent people have been affected. We have adjusted our operations to speed up unfreezing of accounts in such cases within around four hours, instead of the three to seven days earlier.”
New risks emerge
In the past decade digital finance in Thailand has advanced rapidly, especially with digital payment systems like PromptPay. Used by over 70 per cent of the population, PromptPay now processes more than 76 million transactions daily, with transfers exceeding 144 billion baht each day.
These innovations have made financial transactions more convenient and accessible, revolutionizing habits for both individuals and businesses.
This progress, however, has spawned new risks. “Since 2022, over one million victims have reported financial crimes, with losses of nearly 98 billion baht,” Sethaput reported.
The scale and speed of modern payment systems, especially when combined with artificial intelligence, have enabled scams to proliferate at an alarming rate.
“Surveys of about 7,000 samples indicate 70 per cent of them have been targeted, and over 30 per cent have suffered losses across all demographics. More than 50 per cent of stolen funds are transferred out within three minutes, while victims take an average of 18 hours to realize and report the fraud,” he added.
Three pillars of safer finance
To create a safer financial environment, Sethaput emphasized the need to develop three key pillars in tandem: technology, regulation, and data.
● Technology can reduce financial fraud risks by preventing, detecting and managing suspicious transactions.
● Regulatory frameworks are essential for establishing clear rules, promoting best practices and fostering cooperation among relevant parties.
● Data sharing among concerned parties needs to be addressed. Mechanisms for information disclosure and tools to support careful decision-making are also important.
Low public awareness a persistent challenge
Despite the widespread nature of financial scams, public awareness remains low among Thai users of financial services.
“Research shows only 10 per cent of victims report incidents, making it hard for financial institutions to distinguish between honest and fraudulent users. Enhancing data sharing, analysis, disclosure and mechanisms for informed decision-making are crucial,” Sethaput advised.
A significant issue is the prevalence of mule accounts. Criminals often hire individuals—especially those in financial need—to open bank accounts for illicit use.
“Some people do not have a public mindset, so they just grab the small amount of money offered by criminals,” Trynh Phoraksa, criminology lecturer at Mahidol University, said at the “BOT Symposium 2025: Towards Safer and More Inclusive Digital Finance”.
Trynh stressed the importance of early education, saying: “To cultivate a public mindset, we have to start with early school children.”
Police Captain Pakrit Krittayapong of the Cyber Crime Investigation Bureau, Royal Thai Police, concurred, noting that some individuals repeatedly open mule accounts for criminals, driven by need despite awareness of the risks.
Criminals exploit fear and greed
Online scammers frequently impersonate state officials, concocting stories about unpaid taxes or alleged involvement in money laundering to pressure victims into transferring money.
"People should be aware that police or officials will not be telling people to transfer money or do things on their mobile phones,” Pakrit cautioned.
Criminals also lure victims with promises of high returns in bogus investment schemes, often promoted via social media platforms such as Facebook.
These tactics prey on the brain’s amygdala—the emotional alarm system—which processes fear and anxiety. When emotions take over, rational decision-making is overshadowed.
“To protect ourselves, we have to know at all times what we are doing. If a financial decision has to be made, people should delay it for about 45 minutes,” Trynh suggested.
Lessons from neighbors
At the Bank of Thailand Symposium 2025, financial experts shared perspectives on the regional nature of online and digital financial scams.
The outbreak of COVID-19 was cited as a turning point, with more people staying home and using mobile banking, giving criminals greater access to potential victims.
In Singapore, "Government Official Impersonation Scams" have become a serious concern, according to Wenchua Chew of the Monetary Authority of Singapore. Nancy Chau, representing the Hong Kong Monetary Authority, echoed the same concern, noting a surge in online financial scams since the pandemic.
Nor Halimaton Sa’adiah Abdul Halim, an official from Bank Negara Malaysia, described her country’s proactive stance as not just responding to scams but actively working to prevent them, with a special emphasis on strengthening the role of social media platforms in anti-scam campaigns.
Singapore authorities have also worked closely with Meta, the parent company of Facebook, in combating online scams,” Wenchua added.
Progress and ongoing challenges
Recently, Thailand enacted the Royal Decree on Measures for the Prevention and Suppression of Technological Crime (No. 2) BE 2568.
This law requires not only financial institutions but also telecom operators and social media platforms to take responsibility for protecting consumers from telephone and internet scams.
The Thai government has collaborated with neighboring countries to dismantle call center scams operating out of Myanmar and Cambodia.
“Recent measures have yielded positive results, such as the end of unauthorized fraud cases via money-sucking apps since early 2025 and the closure of over 2.8 million mule accounts, which reduced losses from authorized transfer scams from a peak of 8.95 billion baht in the second quarter last year to 5.65 billion baht in the same period this year,” Sethaput reported.
Despite these achievements, “Financial threats will continue to evolve with the financial system. Collaboration among individuals, society and financial institutions is essential to build resilience and ensure Thailand’s secure and balanced growth in the digital finance era,” Sethaput cautioned.
