Wiroj Lakkhanaadisorn, a list MP from the People’s Party, has recently criticized the Bank of Thailand’s governor for his slow response to the growing problem of call centre scams. He urged the governor to reconsider his position and even suggested resignation if he fails to protect the public, allowing many Thais to continue falling victim to these scams.
The outspoken MP denounced the central bank for what he deemed its “lowest point,” where scam groups are audacious enough to impersonate the regulator and trick individuals into transferring money. According to Mr. Wiroj, central bank governor Sethaput Suthiwartnarueput has primarily responded by having the bank issue warnings on Facebook without taking substantial action.
He called for the central bank to expedite measures to delay money transfers to help mitigate losses for victims of these scams. Mr. Wiroj noted that victims often realize they’ve been scammed almost immediately, but real-time transfer systems prevent them from correcting the situation.
He proposed that a brief delay in transfers based on the amounts sent could effectively aid scam victims, provided it does not disrupt regular business transactions. Additionally, Wiroj insisted that the central bank should hold commercial banks accountable for safeguarding the public’s deposit accounts.
He pointed out that the bank governor is aware that nations struggling with call centre scams tend to have banks with low levels of accountability, which leads to insufficient compensation for victims. Without this accountability, banks lack the incentive to enhance security measures to protect customers’ accounts.
Are “money transfer delay measures” a feasible solution to reduce losses for victims of call centre scams?
Kitti Kosavisutte, chairman of the Thailand Banking Sector Computer Emergency Response Team, which comprises financial institutions under the Thai Bankers’ Association (TBA), stated that while delaying money transfers is technically feasible using current IT systems, this approach may only address the issue superficially and could adversely affect honest depositors.
Mr. Kitti explained that authorities are amending the Royal Decree on Cyber Crime Prevention and Suppression, aiming to bolster cybercrime protections, particularly concerning mule accounts and data leaks. Both public and private sectors are collaborating to improve financial fraud prevention. One of the proposals being considered is a 12-hour delay on money transfers to accounts flagged as suspicious, especially for digital transactions, as opposed to the current real-time transfer method.
“The 12-hour delay is based on the assumption that fraudulent activity might occur at night while mobile banking users are asleep. This period would provide consumers with more time to detect and prevent financial fraud,” he added.
According to Mr. Kitti, the proposed measure would likely target accounts suspected of fraudulent activity or first-time transfers, rather than applying universally to all bank accounts. Relevant parties are currently assessing the feasibility of the proposal, including its advantages, disadvantages, and impact on general depositors.
He also mentioned that authorities are exploring the option of holding responsible parties fully accountable for compensating victims in cases of fraud, as these incidents often involve multiple stakeholders—like banks, telecom operators, and consumers—making accountability clarification crucial.
The Bank of Thailand is collaborating with regulatory agencies to consider changes that would ensure victims receive 100% compensation from banks in fraud cases. However, this process demands careful analysis of banks’ responsibilities and examination of similar practices in other countries, stated Mr. Kitti.
Daranee Saeju, the assistant governor of the central bank for payment systems policy and financial consumer protection, mentioned that the regulator is pressing banks to eliminate security gaps that could allow for financial fraud, particularly from data-stealing applications, commonly known as money-sucking apps.
“If a bank does not address these vulnerabilities, it may be required to fully compensate victims for their losses,” Ms. Daranee warned.
What measures has the Bank of Thailand taken to address mule accounts?
While the central bank has not responded to Mr. Wiroj’s suggestion regarding transfer delays, it confirmed to the Bangkok Post that it is actively working with the public and private sectors to combat cybercrime, particularly addressing the issue of mule accounts through a comprehensive data-sharing system that includes the Anti-Money Laundering Office (Amlo), TBA, and other relevant bodies.
Following the enactment of the Royal Decree on Cyber Crime Prevention and Suppression last year, these entities have increased their efforts. They are primarily focused on verifying all deposit accounts in the banking sector to confront mule accounts.
The authorities categorize mule account verification into three levels based on severity: the highest level, black mule accounts, followed by grey and brown, according to central bank data.
Black mule accounts receive close monitoring from Amlo, which updates its records every 1 to 2 weeks, a significant increase from previous monthly updates. When such accounts are identified, they are immediately closed and all electronic and digital transactions suspended, with the central bank prohibiting their reopening.
For grey mule accounts, the TBA has initiated data sharing across the banking sector through a new Central Fraud Register (CFR) system, which began last month, strengthening the fight against mule accounts. Now, banks can close grey accounts instantly, rather
