Financial Crime World

BANK OF THAILAND CRACKS DOWN ON FINANCIAL INSTITUTION FRAUD PREVENTION

Combatting Financial Institution Fraud in Thailand

Bangkok, Thailand - In a bid to combat the rising threat of financial institution fraud in Thailand, the Bank of Thailand (BOT) has introduced new measures to prevent, detect and respond to fraudulent activities. The move comes as the BOT warns that financial loss due to scams is affecting people’s confidence in digital banking.

Rising Threat of Financial Institution Fraud

According to Governor Sethaput Suthiwartnarueput, the number of fraudulent activities has increased significantly in recent times, with scammers using various tactics such as:

  • Short message service (SMS) phishing: Scammers send fake messages to trick people into revealing personal information.
  • Call-center gangs: Scammers pose as bank representatives to steal sensitive information from customers.
  • Loan and money-siphoning applications: Scammers use fake loan apps to steal money from unsuspecting victims.

These scams have led to significant financial losses for individuals and could have a wider impact on Thailand’s financial services industry.

Collaboration to Combat Financial Institution Fraud

The BOT has collaborated with relevant organizations, including:

  • National Broadcasting and Telecommunication Commission: To combat fraudulent activities in the telecommunications sector.
  • Ministry of Digital Economy and Society: To promote digital literacy and prevent online scams.
  • Thailand Banking Sector Computer Emergency Response Team (TB-CERT): To provide a platform for financial institutions to share information on cyber threats.

BOT’s Initiatives to Prevent Financial Institution Fraud

The BOT has introduced three key initiatives:

Preventive Measures

Financial institutions will be required to:

  • Ban sending links via SMS or email that request personal information
  • Limit mobile banking users to one username and one device
  • Implement biometric authentication for digital transactions above a certain threshold

Detective and Monitoring Measures

The BOT will set criteria for detecting suspicious transactions, and financial institutions will be required to:

  • Report such transactions to the Anti-Money Laundering Office
  • Have in place near real-time systems to detect and freeze suspicious transactions

Responsive Measures

Financial institutions will be required to establish a hotline call center available 24/7 for financial fraud victims to contact.

Implementation Timeline and Evaluation

The BOT has urged all financial institutions to implement these measures by March 2023, with some already in place. The bank will also evaluate the effectiveness of these measures and review them regularly to ensure they remain up-to-date and relevant.

Comprehensive Framework to Combat Financial Institution Fraud

While these measures are a significant step forward, the BOT emphasizes that combating financial fraud requires a comprehensive framework that includes:

  • Enforcement of the Royal Decree on Cybercrime Prevention and Suppression: To empower data sharing between financial institutions and authorities, enable immediate blocking of suspicious transactions, and impose penalties on those involved in mule accounts.

The Bank of Thailand is committed to working with relevant organizations to create a safer and more secure financial services industry for all Thais.