Thailand Enacts Decree Mandating Shared Responsibility for Online Scam Losses
New legislation requires banks, telecom operators, and social media platforms to compensate victims of online fraud
The Thai Cabinet has approved a draft executive decree amending the existing law on technology crime suppression, introducing measures that hold banks, telecommunications operators, and social media platforms jointly responsible for compensating victims of online scams.
This initiative aims to strengthen efforts against technology-related crimes.
Government spokesman Jirayu Houngsub announced that the Cabinet endorsed the draft amendment to the Executive Decree on Measures to Prevent and Suppress Technological Crime 2023. The approval followed confirmation from the Council of State's secretary-general regarding the decree's legal enforceability.
Digital Economy and Society Minister Prasert Chantararuangthong informed the Cabinet that the current decree had become inadequate in addressing the increasing prevalence of online scams and call-center operations.
He highlighted that, despite existing measures, financial losses from such activities remain significant, with the public suffering damages of approximately 60 to 70 million baht daily, compared to 100 to 120 million baht per day before the decree's enforcement.
The draft decree outlines several key amendments:
Enhanced Authority: Empowering actions against peer-to-peer (P2P) platforms involved in criminal activities.
Telecom Provider Obligations: Mandating telecom providers to suspend SIM cards associated with fraudulent activities.
Banking Responsibilities: Requiring banks to report information on fraudulent accounts to the Anti-Money Laundering Office (AMLO) to facilitate quicker investigations and victim reimbursement.
Increased Penalties: Imposing stricter penalties on P2P platforms and banks that fail to prevent criminals from opening accounts.
Data Privacy Protections: Establishing penalties for the unauthorized disclosure of personal information.
Shared Accountability: Holding financial institutions, mobile networks, and social media platforms accountable for damages resulting from their failure to exercise due care in their professional duties.
Between October 2023 and November 2024, there were 402,542 reported cases of online crimes, causing damages totaling 42.662 billion baht.
In response, the Digital Economy and Society Ministry emphasized the urgent need to amend the current executive decree to enhance measures against online scams.
Additional measures proposed include:
Digital Asset Regulations: Prohibiting the buying and selling of digital assets through P2P lending platforms and requiring digital asset businesses to refuse account openings and suspend services for customers associated with wallets involved in technology-related crimes.
Telecom Service Suspensions: Assigning the National Broadcasting and Telecommunications Commission (NBTC) or mobile network providers the responsibility to temporarily suspend services for suspicious phone numbers.
Victim Compensation Process: Empowering the AMLO's transaction committee to consider refunding victims without necessitating a court ruling in criminal cases before making a final decision.
The draft decree will be submitted to the Council of State for review before its publication in the Royal Gazette.
The entire process is expected to take approximately 30 days, with the new executive decree anticipated to take effect by February.
This development aligns with recent collaborative efforts between Thailand and neighboring countries to combat online fraud.
Notably, Thailand and China have announced plans to establish coordination centers to tackle illegal call center networks operating along Thailand's borders with Myanmar and Cambodia.
These centers aim to investigate and dismantle operations that have defrauded individuals through phone and online scams.
The Thai government continues to implement measures to protect citizens from online scams, reflecting a broader commitment to enhancing cybersecurity and public safety.