Thailand Banks Told to Step Up Fraud Detection
The Bank of Thailand has issued a set of policy guidelines aimed at helping the country’s financial institutions prevent and detect financial fraud, amid growing concerns about the risks posed by digital banking.
Measures to Protect Customers from Financial Frauds
According to sources, the guidelines require banks to implement the following measures:
- Limiting mobile banking account usage: Banks must limit the number of mobile banking accounts that can be used on one device to prevent unauthorized access.
- Transaction notifications: Banks must provide notifications before every transaction to keep customers informed and prevent unexpected charges.
- Enhanced identity verification: Banks are encouraged to increase diligence in identity verification processes using biometric technology, such as facial recognition or fingerprint scanning.
Additional Measures to Detect Suspicious Transactions
Banks are also being urged to develop account detection and tracking systems for suspicious transactions, including:
- Real-time monitoring: Banks must continuously monitor accounts for unusual activity, such as sudden large withdrawals or deposits.
- Alerts and notifications: Banks should send alerts and notifications to customers when suspicious activity is detected.
Customer Support
To facilitate quick reporting of incidents, banks are required to establish 24-hour hotlines. This will enable customers to report suspicious transactions or other issues promptly.
Extension of Credit Support Measures for COVID-19 Affected Businesses
The Bank of Thailand continues to extend credit support measures for business operators affected by the COVID-19 pandemic. The extension will see the period for adjustment loans extended until April 9, 2024, allowing debtors to receive continuous assistance.
However, entrepreneurs who have used real estate as collateral for loans with financial institutions are being told that they will not be eligible for extensions on debt suspension projects, although they can still negotiate debt restructuring arrangements with their lenders.
The Bank of Thailand says that any remaining credit line from the debt suspension project will be included in a new rehabilitation credit measure to be announced by April 9, 2023.