Thai police bust illegal lender for extreme rates and data breach

Thai authorities apprehended 37 year old man at his residence for running an illegal money-lending enterprise that charged exorbitant interest rates of 8% per week.

The operation, led by senior police officials, uncovered not only evidence of the illicit business but also a trove of personal data harvested from individuals, signalling a breach of Thailand’s Personal Data Protection Act.

Yesterday, a coordinated police operation in Thung Song district, Nakhon Si Thammarat province, led to the arrest of Charoen, also known as “Lek,” for his involvement in unlawful money lending practices and the potential violation of the Personal Data Protection Act.

The search warrant, dated April 20, resulted in the seizure of multiple land titles, underground lottery tickets, and a cache of personal data, indicating a deep-rooted network of illegal activities.

During the raid at a house in the Kuan Krod sub-district, the police team, acting on the command of senior officers from the Special Operations Department, seized three mobile phones, an iPad, numerous land deeds, seven motorcycles, a 9mm handgun with ammunition, and notebooks containing records of underground lottery transactions.

This evidence pointed to a sophisticated operation involving not just illegal lending but also illicit gambling and potentially unauthorised possession of firearms.

Cybercrime

The investigation leading to the raid was prompted by the monitoring of online communications related to cybercrime and illegal money lending.

Police uncovered conversations and personal information exchanges, including full names, national identification numbers, and vehicle registrations, all of which constituted a breach of privacy laws.

The suspect allegedly sold this sensitive data to interested parties for 500 baht per transaction, highlighting a corrupt practice that undermined legal boundaries and societal trust.

Upon interrogation, Charoen confessed to running a loan business for over two years, targeting residents with interest rates of 8% per week for general customers and a slightly reduced rate of 7% per week for acquaintances.

His admission laid bare the financial pressures imposed on the community through these exploitative terms.

The police charged Charoen with offences relating to charging interest rates beyond the legal limit, generating false loans or financial documents to conceal these rates, operating a personal loan business without the necessary permissions, and potentially managing a pawnshop illegally.

Data security

Additionally, the possession of personal data with the intent to disclose it contravened the Personal Data Protection Act, reflecting a disregard for individual privacy and security.

The case has now been handed over to the investigative officers at the Thung Song Police Station to proceed in accordance with Thai law.

As the investigation continues to unfold, authorities are working diligently to identify and prosecute any accomplices or data leak sources to prevent further breaches and criminal activities.

The crackdown not only showcases the government’s commitment to upholding financial and data protection laws but also serves as a stern warning to those engaged in similar illegal operations.