Thailand Freezes Millions of Bank Accounts in Massive Scam Crackdown

Some of the largest banks in Thailand have launched an aggressive campaign against financial crime, freezing millions of accounts suspected of being “mule” accounts used by scammers. 

The operation, which began in August, intensified over the weekend as banks restricted daily transfer limits across the country, according to local reports.

Innocent Customers Swept Up in Fraud Operation

The Cyber Crime Investigation Bureau (CCIB) confirmed on Sunday that the crackdown has inadvertently ensnared legitimate businesses and online vendors. Criminal networks have reportedly shifted tactics, making it harder for banks to distinguish between genuine customers and illicit actors. 

“We urge the public not to panic,” said Wisit Wisitsora-at, secretary of the Digital Economy and Society Ministry. He explained that banks may suspend funds for up to three days, while police can extend the hold to seven days pending investigation.

The Bank of Thailand (BoT) added that the measures are necessary to stem a surge in sophisticated scams operated by Chinese-linked call center syndicates. These networks, often based in neighboring countries, use social engineering techniques to trick victims into transferring funds that are quickly laundered through local mule accounts.

Expatriates and Merchants in Thailand Feel the Squeeze

Foreign residents in Thailand have been particularly vocal about the impact. Many expatriates took to social media and online forums to complain of sudden account freezes and unexplained restrictions lasting weeks. Some reported that they now must visit branches in person to register biometrics and satisfy stricter Know Your Customer (KYC) requirements before making large mobile transactions.

Legitimate Thai merchants, especially online vendors, have also seen their operations disrupted, with funds locked at a critical time for small businesses. Authorities have promised swift reviews to release accounts proven to be legitimate, but the backlog is causing frustration.

The sweeping measures have also reignited debate over alternative payment systems in Thailand. Prominent crypto advocate Daniel Batten quipped, “Thank you, BoT, for the free Bitcoin marketing.”

Jimmy Kostro of the Thailand Bitcoin Learning Center added, “Thank god for Bitcoin.” Yet, under current Thai regulations, using digital currencies for direct payments remains illegal, limiting their practical use for those affected.

As the crackdown continues, Thailand officials maintain that the temporary suspensions are essential to dismantle large-scale fraud networks.