Millions of people in Thailand have been locked out of their bank funds after a state-backed crackdown on suspected scam-related accounts left ordinary citizens and businesses struggling to access their money.
Over the weekend, reports from the Cyber Crime Investigation Bureau (CCIB) and local media said that up to three million accounts were temporarily suspended nationwide. The account freezing came against the backdrop of online fraud cases and money laundering by criminal groups.
According to the Bangkok post, authorities insisted the operation targeted “mule accounts” used by scammers, but admitted many innocent vendors, small businesses, and families had also been caught up in the web of suspensions.
Thailand commenced account freezing crackdown in August
The bank crackdown on scammers began in August, when Thai banks, working with the Anti-Online Scam Operation Centre (AOC) and the Bank of Thailand (BoT), slapped accounts with stricter controls on transfers and daily limits, supposedly to prevent fraud.
Daranee Saeju, assistant governor at the BoT in charge of consumer protection, confirmed that investigators were tracing financial routes to recover money stolen in scams.
“Only accounts that received money from mule accounts have been frozen,” Daranee explained on Saturday. “The AOC and commercial banks are expanding their probe to return as much money as possible to victims.”
In a briefing on Sunday, the CCIB said fraudsters had been using new tactics to launder money, and it was tougher to differentiate funds obtained from legitimate businesses and criminal activity.
Commissioner Pol Lt Gen Trairong Phiwpan told the press that scammers are using more than mule accounts, opting to purchase goods from legitimate sellers before reselling them for cash, which unfortunately made suspicions fall on ordinary vendors.
“Culprits are now using sophisticated methods, which leave innocent people trapped in money-laundering cases,” Trairong said. He noted that some sellers may have knowingly cooperated with fraudsters for commissions, but most were deceived into participating.
Thailand police recorded a case where scammers transferred 100,000 baht into a child’s account, then convinced the child to forward the money. The account was flagged and frozen, but the family was not charged because it did not have any prior involvement in fraud.
Authorities open “war room” for complaints
In response to public indignation, the Digital Economy and Society (DES) Ministry has launched a “war room” to manage the flood of complaints. Officials said the center was receiving hundreds of calls per morning from people whose money had been locked.
“This is not an account freeze in the strict legal sense,” said Wisit Wisitsora-at, a DES official. “Other balances and transactions remain usable.”
The DES mentioned that only court-backed police orders could permanently freeze accounts, and banks or the Anti-Money Laundering Office (AMLO) lockdowns were only temporary.
Suspensions were reviewed through different criteria, including money flow patterns, transaction routes, and if account activity matched the holder’s usual behavior. Wisit said once evidence cleared an account, the suspension could be lifted “within minutes.”
The BoT’s Daranee said a banking system error on September 1 prevented updates to end-of-day balances. This left accounts showing outdated amounts and caused confusion for many customers.
Crime prevention at the expense of public trust?
The central bank said it was working with the AOC and commercial banks to revise procedures. New measures are expected following discussions on Sunday.
Daranee admitted the turmoil caused to legitimate citizens but said the crackdown was necessary to restore confidence in the banking system.
Hodder Law firm founder Sasha Hodder bashed the central bank for freezing the accounts, saying citizens were better off using crypto because they “can’t freeze Bitcoin.”
Meanwhile, the CCIB deployed more officers to police stations and call centers to speed up the review process. Victims were instructed to contact their local police or call hotline numbers.
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Source: https://www.cryptopolitan.com/thailand-wake-up-to-frozen-bank-accounts/
