MP urges central bank governor to resign over call centre scams

People’s Party list MP Wiroj Lakkhanaadisorn launched a blistering attack on the governor of the Bank of Thailand, urging him to resign if he can’t protect the public from the alarming rise in call centre scams.

He slammed the central bank for reaching a “lowest point,” with scammers boldly impersonating officials to trick unsuspecting Thais into transferring their cash.

Wiroj accused Governor Sethaput Suthiwartnarueput of doing little more than posting warnings on Facebook, as countless victims fall prey to these scams. He called for urgent measures to delay money transfers, highlighting that many victims realise they’ve been conned almost immediately but are powerless to reverse real-time transactions.

“A simple delay in transfers based on the amount sent could save many from financial ruin.”

Wiroj insisted that this wouldn’t interfere with regular banking. He also demanded that commercial banks be held accountable for protecting their customers’ accounts, pointing out that in countries plagued by such scams, banks often evade responsibility, leaving victims without compensation.

Kitti Kosavisutte, head of the Thailand Banking Sector Computer Emergency Response Team, admitted that while delaying money transfers is technically possible, it might only scratch the surface of the issue and could frustrate honest customers.

Cyber Crime Prevention

Police are working on amending the Royal Decree on Cyber Crime Prevention to bolster protections against cyber fraud, particularly focusing on mule accounts and data leaks. Public and private sectors are considering a 12-hour delay on suspicious transactions, aiming to catch fraudsters while their victims are asleep, said Kitti.

“This delay could help flag suspicious accounts and thwart fraudulent activities.”

However, it would target only accounts flagged for fraud rather than impacting all transactions.

In a bid to ensure full accountability, discussions are underway to involve banks, telecom operators, and consumers in compensating scam victims. The Bank of Thailand is collaborating with various regulatory agencies to guarantee that victims receive 100% compensation, while carefully assessing banks’ responsibilities in these situations.

Daranee Saeju, the central bank’s assistant governor for payment systems policy, warned that banks must tighten their security against data theft and fraud.

“If they fail to protect their systems, they might be forced to fully compensate victims.”

Mule accounts

While the central bank has not commented on Wiroj’s suggestions, it is working with various sectors to tackle cybercrime, especially concerning mule accounts, through a robust data-sharing framework.

Since last year’s implementation of the Royal Decree, efforts to verify deposit accounts have intensified, categorising accounts based on risk: black, grey, and brown. Black accounts are closely monitored and swiftly shut down, while grey accounts are managed through a new Central Fraud Register system. Brown accounts are verified internally by individual banks.

To further safeguard consumers, the central bank is pushing for a money-lock system and enhanced security features, including facial recognition for high-value transactions, expected to roll out by the fourth quarter of this year. So far, 15,000 depositors linked to mule accounts have been identified.

Digital Economy and Society Minister Prasert Jantararuangthong has vowed to maintain a strong focus on online fraud prevention and a sustainable digital economy. The Anti Online Scam Operation Center reported a sharp decline in daily financial losses due to online crime, having suspended over a million mule accounts and shut down 138,660 illegal URLs since October 2023—a staggering eleven-fold increase from the previous year.

With scams rampant in Thailand, affecting hundreds of thousands annually and causing financial damage of around 70 billion baht from March 2022 to July 2024, it’s clear that urgent action is needed. The Global Anti-Scam Alliance Report 2024 revealed that only 55% of Thais feel confident in identifying scams, while a staggering 89% encounter them at least once a month.