Thai Banks and Mobile Operators to Bear Costs of Phone Scam Damages

[webfact]

File photo courtesy: moneyandbanking

 

In a significant move to tackle the rising issue of phone scams, Thailand's government is preparing new regulations that will hold banks and mobile operators accountable for losses incurred by victims. The initiative comes as these scams have become increasingly sophisticated and widespread, causing considerable financial distress among the public.

 

The Minister of Digital Economy and Society, Prasert Jantararuangtong, announced plans to issue an executive decree within the month that would mandate financial institutions and telecom companies to reimburse consumers who fall victim to such fraudulent activities.

 

This proposed regulation aims to compel these organisations to implement and maintain stringent security measures to protect their customers.

 

Minister Prasert stated, "Banks and mobile operators should bear the responsibility if they fail to protect their clients from scams conducted through their services."

 

He emphasised the necessity for banks to perform thorough background checks on account holders to prevent the creation of mule accounts often used by scam groups.

"Those without employment should be questioned about the need for multiple bank accounts," Prasert remarked, pointing towards more diligent customer verification processes.

 

Furthermore, the decree would require mobile phone companies to scrutinise SMS messages containing potentially harmful links before allowing them to be forwarded to users.

 

The minister criticised current practices, suggesting that operators prioritise revenue generation over public safety by indiscriminately circulating all messages without adequate screening.

 

The push for this legislation highlights the government’s commitment to bolstering consumer protection and ensuring that financial and telecom sectors play an active role in combating cybercrime.

 

The measure is designed to not only offer financial relief to scam victims but also to pressure service providers into adopting more robust cybersecurity protocols.

 

The planned decree arrives in response to growing public concern about the vulnerability of personal data and financial information amidst a surge in digital scams, particularly those targeting mobile users.

 

These scams frequently involve malicious links sent via SMS that infect devices with malware or trick users into divulging sensitive information.

 

As these regulations are set to be fast-tracked, their impact could serve as a blueprint for other countries grappling with similar challenges in the digital age.

 

The government's decisive action underscores the importance of shared responsibility between consumers, service providers, and regulators in safeguarding against digital threats.

 

This development marks a pivotal shift in how phone scams are addressed in Thailand and could lead to transformative changes in how financial and telecom industries operate, prioritising customer security over service profitability, reported Bangkok Post.

 

-- 2025-01-07

 

 

 

 

[ukrules]

Wow, welcome to the 20th century where actions have consequences.

Can't wait until they catch up to the 21st century.

[Negita43]

Serves them right for forcing people to use one device for security. Two device (ie Moble for OTP and notebook for access to account) far safer.

This leming like rush to have everything on a mobile phone is dangerous

[Gknrd]

Personally I don't believe it, if they ever pay out it would be for a low amount for the publicity only.

Better odds of Taksin serving his 10 years than for these company's to pay out.

[cowellandrew]

I bet the banks are rueing the day they opened all them bank accounts for those under 15 year olds and pesky OAP,s

 

😂😂😂

[klauskunkel]

11 hours ago, webfact said:

"Those without employment should be questioned about the need for multiple bank accounts,"

and the Bank of Thailand should be questioned about their account insurance policy limit of 1mio per bank, making multiple accounts in multiple banks a necessity for people with more than 1mio baht in deposits...

[ukrules]

16 minutes ago, klauskunkel said:

and the Bank of Thailand should be questioned about their account insurance policy limit of 1mio per bank, making multiple accounts in multiple banks a necessity for people with more than 1mio baht in deposits...

There's no need. The reasoning is obvious.

When the big bust part of the boom/bust cycle comes they won't have to pay out anywhere near as much - it's as simple as that - reducing potential liabilities.

So you lose your money and they get to keep theirs.

 

[renaissanc]

32 minutes ago, klauskunkel said:

and the Bank of Thailand should be questioned about their account insurance policy limit of 1mio per bank, making multiple accounts in multiple banks a necessity for people with more than 1mio baht in deposits...

I believe it's one million baht per person, even if you have 100 accounts at the bank. I asked at a bank about this once. It was then I decided gold was better than having money in banks.

[Confuscious]

12 hours ago, webfact said:

The minister criticised current practices, suggesting that operators prioritise revenue generation over public safety by indiscriminately circulating all messages without adequate screening.

 

How about making FACEBOOK pay for people who are scammed as well.
FACEBOOK prioritise revenue generation over public safety very clear.

[hotchilli]

The institutions will hate this, and fight it.

[jippytum]

1 hour ago, Confuscious said:

How about making FACEBOOK pay for people who are scammed as well.
FACEBOOK prioritise revenue generation over public safety very clear.

I agree Facebook  have the most scammers and they are allowed to operate with impunity. Little or no action to prevent scammers from Facebook amin. 

[Oliver Holzerfilled]

"The government's decisive action underscores the importance of shared responsibility between consumers, service providers, and regulators in safeguarding against digital threats."

 

No need, have amulet.

[Surasak]

21 minutes ago, jippytum said:

I agree Facebook  have the most scammers and they are allowed to operate with impunity. Little or no action to prevent scammers from Facebook amin. 

So, is the answer, not to use Facebook? I don't use it and it hasn't made one iota of difference to my life.

[frankie machine]

maybe now they will start to care about guarding the accounts of their depositors.  

[CygnusX1]

13 hours ago, Negita43 said:

Serves them right for forcing people to use one device for security. Two device (ie Moble for OTP and notebook for access to account) far safer.

Compulsory 2 factor authentication via mobile phone can be a nightmare for frequent travellers. There are some countries in which your home SIM card doesn’t work, and what happens if your phone stops working or is stolen? There should be an option for people to have a bank account which doesn’t require 2 factor authentication, for which the user absolves the bank of any responsibility in case of losses due to fraud.

[lordgrinz]

It won't be coming from the profits of the businesses, all expenses of a business are paid by the customers, so the end result is the customers of the bank or mobile operator will be stuck with the bill, one way or the other. 

[7euner]

2 hours ago, klauskunkel said:

and the Bank of Thailand should be questioned about their account insurance policy limit of 1mio per bank, making multiple accounts in multiple banks a necessity for people with more than 1mio baht in deposits...

How is this different than Europe, except limit is €100.000?

[lordgrinz]

3 minutes ago, 7euner said:

How is this different than Europe, except limit is €100.000?

 

The problem is it was reduced here over the years, from I think 10 Million Baht, to then 5 Million baht, then to 1 Million baht. It's a ridiculously low deposit insurance, but I assume they were trying to force people to invest it instead, thus now you have scams luring people to their doom.

[Peterphuket]

Do you still understand, I don't, because of security, internet banking (only in Thailand) was no longer allowed and was only possible by phone.
Meanwhile, we are almost 2 years on, and what turns out....scam damages by phone.
I preferred internet banking then but also now, but I suspect there is more behind it, could it have something to do with controlle.

[Iron Tongue]

On one hand, this does force corporations to care more about letting scammers take over their communications and authorizations.

But on the other hand, this just allows the Thais to behave even more carelessly and stupid with their digital identity and finances.

 

[topt]

17 minutes ago, Peterphuket said:

Do you still understand, I don't, because of security, internet banking (only in Thailand) was no longer allowed and was only possible by phone.
Meanwhile, we are almost 2 years on, and what turns out....scam damages by phone.
I preferred internet banking then but also now, but I suspect there is more behind it, could it have something to do with controlle.

SCB specifically - most of the other big banks still allow internet banking as far as I am aware.

[phyx1u5]

why don't they go after the people that steal and sell personal data instead? oh right because it's hard work and they are lazy af

[Bday Prang]

How on earth is this ever going to happen.   The power wielded by these companies and institutions is far greater than anything the government can come up with.

[klauskunkel]

4 hours ago, klauskunkel said:

and the Bank of Thailand should be questioned about their account insurance policy limit of 1mio per bank, making multiple accounts in multiple banks a necessity for people with more than 1mio baht in deposits...

 

3 hours ago, renaissanc said:

I believe it's one million baht per person, even if you have 100 accounts at the bank. I asked at a bank about this once. It was then I decided gold was better than having money in banks.

From August 11, 2021 Thai Baht Deposits are protected under the Deposit Protection Agency Act up to a maximum of one million baht per one depositor per financial institution.

More information available at Deposit Protection Agency website http://www.dpa.or.th/

•  

[Sydebolle]

Go back to the classroom and teach kids basics, common sense, querying and dialogue - not only monologue by sometimes unqualified teachers which are still considered semi-divine. 

A friend's wife, arguably not the brightest candle on the cake, does not answer phone calls from unknown numbers like delivery boys etc. He listed some articles for sale - a genuine undertaking - customers called his (Thai speaking) wife's number which he listed to facilitate discussion and was utterly surprised, that nothing happened. When checking with his wife she had 57 different numbers of potential buyers; not answered as she was afraid of scammers. 

You may now kiss the ring! 

[AustinRacing]

Nonesense. This will open up another can of worms where scammer working with a victim/potential scammer to get reimbursement from a bank and then split the profits. I envisage this will increase the e-scam businesses. 

[oustaristocrats]

4 hours ago, hotchilli said:

The institutions will hate this, and fight it.

 

and victims will be requested to bring an enormous amount of evidence which they can't, mission impossible, therefore this bank and telecom responsibility is a nice story to keep you calm, but it is a fake instrument to make you believe there is almost no risk of having higher amounts on your account. 

[oustaristocrats]

16 hours ago, Negita43 said:

Serves them right for forcing people to use one device for security. Two device (ie Moble for OTP and notebook for access to account) far safer.

This leming like rush to have everything on a mobile phone is dangerous

 

Ohh god no, please no OTP, back to the middle ages. That's always the problem of software engineers, they always find nice solutions, 100% safe, you receive a message with a code on your phone, enter the code in the payment process and done !

 

Sounds good, but nows comes the reality ...

The OTP number must be officially registered at the branche, you can't do it online, you have to physically go there, and you can't use a proxy, only you can go there, maybe 50-100km away from your home.

 

Then the worst, suppose, you're here for a couple of months, go abroad, your prepaid Thai sim will go out of order, you can't even use your bank account and nobody can help. 

[black tabby12345]

A Good Move...

[Jonathan Swift]

11 hours ago, Gknrd said:

Personally I don't believe it, if they ever pay out it would be for a low amount for the publicity only.

Better odds of Taksin serving his 10 years than for these company's to pay out.

No doubt at which time when heII freezes over we can all go skating