Introduction to Thailand’s New Online Transfer Limit

Thailand has introduced a new measure to combat online scams by setting a daily limit of 50,000 baht ($1,537) on many online transfers. This move is aimed at protecting vulnerable customers, such as children and older people, from falling prey to financial fraud.

The Problem of Online Scams

Online scams are a huge criminal industry that makes billions of dollars annually, with Southeast Asia being a particularly active region. The scammers often target vulnerable individuals, including children and the elderly, and trick them into transferring large sums of money. The pressure is increasing on banks to play a more active role in safeguarding the assets of customers targeted by scammers.

How the New Measure Works

The new measure aims to curb financial fraud by preventing criminals from receiving and transferring large amounts of money at one time. The daily transfer limit will be applied to transfers in three different tiers: under 50,000 baht ($1,537), under 200,000 baht ($6,147), and above 200,000 baht ($6,147), depending on each customer’s risk profile and the banks’ assessment under know-your-customer (KYC) rules. Customers with established records of responsibility can continue transferring at their usual levels.

Implementation and Existing Safeguards

The measure will be implemented for new mobile banking and internet banking customers by the end of this month and for existing customers by the end of this year. Thailand has around 12 million mobile banking users, and previous central bank safeguards capped mobile banking transfers at 50,000 baht ($1,537) per transaction, with facial recognition required, and 200,000 baht ($6,147) per day in total.

The Scale of the Problem

In June alone this year, 24,500 scam cases related to money transfers were reported to the authorities, causing total losses of 2.8 billion baht ($86.1 million), an average of 114,000 baht ($3,504) per case. The largest single fraudulent transfer amounted to 4.9 million baht ($150,591). Scammers typically need only three minutes to siphon off half of the stolen funds, while victims typically take 19-25 hours to report the crime.

Vulnerable Groups

Children under 15 were involved in 78,468 financial scam cases, while victims over 65 years of age accounted for 416,453 cases in the first six months of this year. These numbers highlight the need for increased protection for vulnerable groups and the importance of the new measure in preventing online scams.

Conclusion

Thailand’s new online transfer limit is a step in the right direction towards combating online scams and protecting vulnerable customers. By preventing criminals from transferring large amounts of money at one time and enabling timely freezing of illicit funds, the new measure aims to increase the chances that victims will be able to recover at least some of their money. As online scams continue to be a major problem, it is essential for banks and authorities to work together to prevent these crimes and protect customers.