Over the weekend, Thai banks froze millions of accounts suspected of acting as “mules” for scammers, inadvertently affecting innocent people and businesses caught in the crackdown.
The nationwide operation, which began in August, has reportedly frozen around three million accounts and imposed daily transfer limits on all bank customers, according to local reports.
The Cyber Crime Investigation Bureau (CCIB) confirmed on Sunday that the accounts of legitimate online vendors and merchants are also being affected, as scammers adopt new methods to launder stolen funds, the Bangkok Post reported.
The Bank of Thailand warned that more account freezes could occur as authorities expand their investigation into mule accounts.
“We urge the public not to panic. The suspension is temporary and will be lifted once checks confirm no wrongdoing,” said Wisit Wisitsora-at, secretary of the Digital Economy and Society Ministry, on Monday. He added that commercial banks may suspend suspect funds for up to three days, while police can extend the suspension to seven days.
This year, call centers with ties to China, often operating from neighboring countries, have launched online scams in Thailand, using social engineering tactics to lure victims. Earlier this month, Thai police joined forces with authorities in Japan and India in a full-time operation aimed at dismantling these call center syndicates.
Expatriates in Thailand have taken to social media and online forums to voice frustration over being locked out of banking services. Many report their accounts at certain banks being frozen or restricted for weeks without explanation. Residents now must register their biometrics in person and follow strict Know Your Customer procedures to make larger transactions via mobile apps.
Bitcoin emerges as an alternative
Some see the banking chaos as an opportunity for cryptocurrency adoption. “Thank you, BoT, for the free Bitcoin marketing,” said crypto investor Daniel Batten. Jimmy Kostro from the Thailand Bitcoin Learning Center added, “This should be an international story. Thank God for Bitcoin.”
However, Thai residents face legal limitations. While Bitcoin and other cryptocurrencies remain popular for trading, the central bank has banned the use of digital currencies for payments.
Central bank seeks solutions
In August, banks nationwide imposed a 50,000 baht ($1,570) transfer limit in response to a surge in call center fraud, where scammers used mule accounts to launder money. Some merchants have temporarily stopped accepting QR code payments, and account holders are reportedly withdrawing funds out of fear of further freezes.
Amid growing public concern, the Thai central bank has held discussions with the CCIB on a workaround for the account freezing process and transfer limits for law-abiding account holders.
