Thailand banks, telcos to compensate customers for online fraud

Thai 20 Baht note. Photo from Pexels

The Ministry of Digital Economy and Society said Tuesday that the decree, aimed at curbing online scams, could take effect before the end of January, according to Bangkok Post.

It requires financial institutions and telecom operators to establish robust preventive measures.

Minister of Digital Economy and Society Prasert Jantararuangtong has underscored the urgency of the decree, saying weak oversight has allowed bank accounts to be exploited for money laundering.

He urged banks to implement stricter verification processes when opening accounts to prevent misuse, especially for mule accounts used by scam networks.

"Jobless people should be asked why they want to open so many bank accounts."

He also called on telecom providers to block SMS messages containing potentially fraudulent links instead of prioritizing revenues from messages.

Its full details would be released after its publication in the Royal Gazette, he added.

Thailand’s internet penetration rate is currently 78.3% and is projected to reach 86.6% by 2029, according to Tuoi Tre citing Global Times newspaper.

This presents growing cybersecurity challenges that could impact the broader region.