Bank of Thailand shuts down 200,000 suspicious accounts

The Bank of Thailand has frozen nearly 200,000 “mule accounts” linked to online financial fraud, as customers have lost over 60 billion baht to such scams in the last two years.

• 🏦 Bank of Thailand’s Crackdown on Suspicious Accounts: The Bank of Thailand (BOT) has taken action to shut down nearly 200,000 suspicious accounts linked to online financial fraud. This move aims to protect bank customers from scams and financial losses.
• 🕵️‍♂️ Mule Accounts Targeted: The focus of the crackdown is on “mule accounts,” which are used by fraudsters to facilitate illegal transactions. These accounts are often opened by unsuspecting individuals who are tricked into providing their personal information.
• 💰 Significant Financial Losses: The BOT’s action comes in response to a surge in online financial fraud, which has resulted in significant losses for bank customers. In the past two years, scam losses have reportedly exceeded 60 billion baht (approximately $1.7 billion USD).

Financial fraud cases in the past two years have resulted in losses of over 60 billion baht, prompting the central bank to tighten regulations and enhance security measures for online transactions.The central bank is focusing on individual depositors and implementing new rules to verify and monitor suspected mule accounts, aiming to protect consumers from financial fraud and cyber-risks.

To address this, the central bank plans to share a database of risky customers among banks and tighten rules for opening new accounts.

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They also aim to upgrade security systems for online transactions and focus on individual depositors rather than controlling deposit accounts for suspected mule activities. The crackdown comes in response to a surge in financial crimes, including scams related to loans, high-interest deposits, and ponzi schemes.

The central bank believes that these new regulations and tools will better protect consumers from financial fraud and manage cyber-risks.

Based on the information available, some of the prevalent types of online financial fraud in Thailand include:

📧 Email and SMS Scams:

• Phishing scams where fraudsters impersonate banks or government agencies to trick people into sharing their personal and financial information.
• Scams involving fake investment or get-rich-quick schemes promoted through unsolicited emails and text messages.

💻 Internet-Based Fraud:

• Fraudulent online shopping sites that take payment but never deliver the promised goods.
• Fake online loan or credit card applications used to steal personal data.
• Cryptocurrency-related scams, such as Ponzi schemes or fake exchange platforms.

📱 Mobile App-Based Scams:

• Malicious mobile apps that steal user data or conduct unauthorized transactions.
• Fake mobile banking apps designed to mimic legitimate financial institutions.

💰 Money Mule Schemes:

• Individuals being recruited to open bank accounts to receive and transfer funds from illegal activities, often unknowingly.
• The accounts are then used to facilitate money laundering and other financial crimes.

The Bank of Thailand’s crackdown on suspicious accounts is likely targeting these types of online fraud to protect Thai bank customers and the financial system as a whole.