Thai condo scam costs 200 victims 3 billion baht
Seventy people approached Thailand’s Department of Special Investigation (DSI) with allegations of being scammed into purchasing condominium units, leading to a collective financial loss of 3 billion baht. This group is part of a larger contingent of about 200 people who claim to have fallen victim to a fraudulent debt relief scheme.
Pavena Hongsakula, leading the charge, filed the complaint on behalf of the victims. She is known for her work with the Pavena Foundation for Children and Women, which the victims contacted for assistance over the weekend. They allege deception by a company that promised to clear their credit card debts in exchange for signing contracts to buy condos.
One of the victims, identified only as Meen, recounted her experience with the company based in Khlong 2, Lam Luk Ka district, Pathum Thani province. She was approached with an offer to settle her 900,000 baht credit card debt. Meen was puzzled by how the company knew about her financial situation but accepted the offer when they paid off her debt.
Meen reported to the Khu Khot Police Station, explaining that the debt was settled by the company, which then required her to join a condominium purchasing scheme. Initially, she believed she had committed to buying one unit. However, she later discovered that the company had used her documents to secure loans from multiple banks, leaving her with 16 million baht in liabilities for four units.
The company arranged that Meen would pay for one unit while it would cover the costs of the remaining three. The contract also included a clause for the company to repurchase all units within two years. This agreement was not honoured, and Meen is now responsible for the substantial debt and facing legal action from the banks.
Other victims have reported similar predicaments, with some facing debts as high as 40 million baht from being coerced into purchasing several units.
The affected individuals have formed a LINE group with over 200 members to share their experiences and support each other. Pavena noted the severe distress among the victims, especially after the company’s abrupt closure.
“Everyone was very distressed because the company had already closed.”
Pavena is appealing to the DSI to assist in negotiating with banks for debt restructuring on behalf of the victims. She also called for a thorough investigation into the company and other businesses employing similar fraudulent tactics, often advertised on social media, reported Bangkok Post.
What Other Media Are Saying
- Bangkok Post highlights an MP’s frustration with the Bank of Thailand’s response to escalating online scams, urging swift measures to protect citizens, including potential delays in money transfers to curb fraud. (read more)
Frequently Asked Questions
Here are some common questions asked about this news.
Why do fraudulent schemes like this often target individuals with existing debts?
Scammers exploit vulnerability and urgency in those with debts, promising quick solutions that appear as lifelines but trap victims further.
How could the company’s knowledge of personal financial details impact future fraud prevention measures?
Understanding data breaches could lead to enhanced security protocols, reducing unauthorised access to personal financial information.
What if the DSI successfully negotiates debt restructuring for these victims?
Victims might see reduced financial burdens, encouraging similar interventions in future fraud cases and highlighting the need for systemic support.
What lessons can potential buyers learn from this condominium scheme debacle?
Due diligence and scepticism towards offers that seem too good to be true can prevent falling victim to intricate scams.
How might social media’s role in promoting scams change with increased awareness and regulation?
Heightened scrutiny and regulation could decrease scam visibility, but scammers may evolve tactics, necessitating continuous vigilance.
