Financial Crime World

Financial Crime Prevention Methods in Thailand Under Scrutiny

The Bank of Thailand (BOT) has sounded the alarm over the growing threat of financial fraud in the country, which has taken on various forms including short message service (SMS), call-center gangs, fraudulent loans, and money-siphoning applications. These schemes have resulted in significant financial losses for individuals and eroded public confidence in digital banking.

Measures to Combat Financial Fraud

In response to these threats, the BOT has been working closely with relevant organizations within and outside the financial sector to prevent, detect, and respond to fraudsters and support victims of financial fraud. The central bank has also urged financial institutions to accelerate their efforts to safeguard customers and coordinated with authorities such as:

  • National Broadcasting and Telecommunication Commission
  • Ministry of Digital Economy and Society
  • Thailand Banking Sector Computer Emergency Response Team (TB-CERT) to block fraudulent SMS.

Additional Measures Introduced

However, the current measures must be strengthened in light of the evolving nature of fraudulent activities, the proliferation of mule accounts, and the lengthy process for freezing suspicious accounts. To address these concerns, the BOT has introduced additional measures to combat financial fraud from end-to-end, including:

  • Preventive Measures
    • Banning links in SMS or email that request personal information
    • Limiting mobile banking users to one username per device
    • Implementing biometric authentication for high-risk transactions
  • Detective Measures
    • Setting criteria for detecting and monitoring suspicious transactions
    • Reporting such activities to the Anti-Money Laundering Office
  • Responsive Measures
    • Establishing a hotline call center for financial fraud victims
    • Being responsive when losses occur

Implementation Timeline and Evaluation

The BOT has urged all financial institutions to implement these measures promptly, with some already in place and the remainder targeted by March 2023. The Bank of Thailand will also regularly evaluate the effectiveness of these measures and review them as necessary to ensure they remain up-to-date and effective.

Comprehensive Framework Needed

However, the central bank recognizes that its efforts are only a starting point in tackling financial fraud, and that a comprehensive framework is needed to combat this issue effectively. This framework must include:

  • Enforcement of the Royal Decree on Cybercrime Prevention and Suppression
  • Data sharing between financial institutions and authorities
  • Immediate blocking of suspicious transactions
  • Penalties for those involved in mule accounts

Contact Information

For more information, please contact: Technology Risk Supervision Department, Bank of Thailand Tel: +66 (0) 2283 6574 or +66 (0) 2356 7695 Email: [ITS supervision@bot.or.th](mailto:ITS supervision@bot.or.th)