Crime

Financial Scams and Get Rich Schemes on the Rise in Thailand

Thailand has seen a significant increase in complaints about financial scams, selling non-existent products or doubling the money for prospective investors quickly.

Individuals have lost billions of baht as a result of scams. According to Acting Sub Lt Thanakrit Jitareerat, Secretary to the Minister of Justice, the “Forex -3D” scheme, which surfaced several years ago and was brought back to public attention following the indictment of actress Savika “Pinky” Chaiyadej, at its peak it attracted up to 50,000 victims and total investments worth up to 30 billion baht.

Around 6,000 people have fallen for a scam involving a Thai YouTuber, Suchata Kongsupajak, better known as Nutty, with financial damages exceeding two billion baht.

While law enforcement agencies may have no trouble locating and prosecuting fraudsters, recovering stolen funds for victims is different.

Some people are drawn into scams by promises of high returns that they can enjoy without the need for knowledge or expertise, according to Mr. Piyasiri Wattanavarangkul, the former director of the Department of Special Investigation Bureau.

“They are enticed by the promise of high returns in a short time and earnings from recruiting new investors. They also do not need to be familiar with the schemes. The economic situation could play a role. However, these are external factors. Greed and ignorance are internal factors, “He stated.

Mr. Piyasiri said that some people fall for such scams repeatedly, implying that they are aware of the risks and willing to take them.

financial scams

Ponzi schemes and Financial Scams

One major reason Ponzi schemes are growing is that participants are unaware of the legal ramifications. He believes it is critical to raise public awareness that Ponzi scheme participants risk losing their money and freedom if they invite others to join bogus investment schemes.

Foreign exchange trading, cryptocurrency investment, direct sales, commodity or service investment, forward contracts, fund mobilization, and charity scams are the seven types of Ponzi schemes in the country, according to Mr. Piyasiri.

Foreign exchange trading in Thailand requires a license from the Bank of Thailand, so legal operators are commercial banks, financial institutions, and authorized agents. Scammers usually organize forex trading workshops to attract investors, giving them access to their potential victims.

In terms of cryptocurrency trading, operators in this market must obtain a license and are subject to scrutiny by the Securities and Exchange Commission (SEC).

However, according to him, many investors are unaware of this and invest with illegal trading platforms claiming to operate in other countries’ digital asset exchanges.

Direct sales are not all scams, but they are when they focus on bringing in new members rather than selling products and when members are compensated for recruiting people rather than the sales generated by their business.

Commodity investments and forward contracts are speculative investments in which individuals are duped with promises of high returns, particularly when prices rise. He claims that gold, oil, and agricultural products such as rice are used in these fraudulent schemes.

financial scams Thailand

Celebrity endorsement of financial scams

Fund mobilization scams are simple, with investors being urged to invest in stocks. The most common type of charity fraud scam is a cremation service fund, in which members deposit money with the promise that their families will receive a lump sum upon death.

According to Mr. Piyasiri, the advancement of technology and social media has provided scammers with an effective tool for defrauding people. Celebrity endorsement lends credibility to scams, even if these public figures have nothing to do with the schemes.

He said that the Royal Thai Police and the Justice Ministry’s DSI are in charge of combating this type of crime, while the Interior Ministry and the Finance Ministry play a role in raising public awareness.

On the other hand, he added that authorities must be proactive in combating scams, taking action before harm is done, such as inviting suspected scammers in for a chat when they spot scams or examining their tax records.

According to Mr. Piyasiri, Ponzi schemes cause victims more than just financial harm; in many cases, families and communities are destroyed, and some people are driven to commit suicide.

“The most important thing is that officials use technology to reach victims and ensure that their complaints are investigated as soon as possible. It is critical to recovering as many stolen assets as possible, “He stated.

He suggested that the decree on loans amounting to public fraud be improved to assist authorities in keeping up with the scams.

Anyone can become a victim

According to Pol Lt Gen Jirabhop Bhuridej, commissioner of the Central Investigation Bureau (CIB), Ponzi schemes thrive because they promise high returns and entice investors with quick money.

They use the image of “new millionaires” to dupe people into believing they can change their lives with a small investment. People from all over Thailand are drawn to such opportunities.

According to research on forex trading scams, approximately 63.3% of victims have at least a bachelor’s degree, 61.7% are office workers, and 42.8% earn between 15,000 and 30,000 baht per month.

According to the statistics, many victims are well-educated and have job security, so unless people are made aware of tricks and how to spot them, they will continue to fall for scams, he says.

According to the CIB chief, people running scams design their investments to keep up with people’s changing lifestyles and new technologies, and forex trading is just one example.

According to him, these business opportunities are not real, and payments will continue until the schemes can no longer attract new investors.

According to the CIB chief, social media platforms and financial transactions made easier by smartphones significantly increase financial damages.

According to Pol Lt Gen Jirabhop, police have increased awareness campaigns about scams, but the best defence is to be skeptical and conduct due diligence before investing.

“Even if they are friends or family, be skeptical. It is safe to assume that no business will or can provide you with more than what appears reasonable to expect, “He stated.

Pol Col Siriwat Deepor, deputy commander of the Technology Crime Suppression Division (TCSD), warned investors against becoming tools in scams, particularly when they are compensated for recruiting new members.

He said that if convicted of convincing people to invest in a fraudulent scheme, they face 10 years in prison.

He also urged the public to report scams by dialling 191 or 1599.

Source: Bangkok Post

Crime

Police Officer Being Ordained at Temple Arrested for Running Scam Call Center

Police in Northern Thailand have arrested a fellow officer as he was being ordained at a temple in Ngao district of neighbouring Lampang province.

Pol Lt Col Bandit Khonkan chief inspector from the Hang Dong police station was disrobed and taken to the Chang Puak station in Chiang Mai. He was arrested on charges of running a call centre scam gang in Chiang Mai Province.

According to Thai Media Chiang Mai Provincial Police Region 5 obtained an arrest warrant for Pol Lt Col Bandit on Friday from the Chiang Mai Provincial Court for procuring illegal telecom equipment, setting up a station and using public airwaves to run a telecommunications business without permission.

Pol Lt Col Bandit reportedly told investigators that he was not the ringleader and was only a member of the gang with Chinese partners.

His arrest followed the apprehension of his 26-year-old daughter, Miss Wanuchapond, 26, and three others during raids at three housing projects in Chiang Mai on Friday, Pol Maj Gen Weerachon Boontawee, deputy chief of Provincial Police Region 5 told Thai media.

During the raids police police discovered around 12 GSM gateways, or SIM boxes, which are devices used for converting cellular networks into mobile phone numbers used domestically.

The chief inspectors daughter Miss Wanuchapond told the arresting officers that she was paid 8,000 baht a month at each of the three locations for renting thr rooms and monitoring devices.

She claimed she had no idea what the devices were and accepted the job because the pay was attractive.

Police investigators working with telecom regulators used a special tracking device to monitor the gang’s communications and learned that its base was in Myanmar opposite Mae Sai district of Chiang Rai.

The call center gang used the GSM gateways to make calls over the internet to scam people in Thailand out of million of baht.

The GSM gateways transmitting signals via SIM boxes to convert them into domestic phone numbers, duping victims into thinking they were being called from Thai government agencies.

Pol Maj Gen Weerachon said that each SIM box held 32 SIM cards, with a capacity of up to 300,000 calls a month. The seized devices had made fraudulent calls over 3.6 million times.

He said the their investigation is ongoing and they are working to track down the remaining conspirators, including Chinese and other Thai suspects.

Authorities are still deciding whether Pol Lt Col Bandit will be dismissed from the force, he said, adding that so far, no other officers are known to have been involved.

Police in Chiang Rai Launch Crackdown on Cyber Criminals in Golden Triangle

Meanwhile, Prime Minister Settha Thavisin has authorized the establishment of an emergency cyber center operated by the Royal Thai Police to combat transnational crimes committed by call center gangs along the Thai border in Chiang Rai province.

On July 19, Prime Minister Settha Thavisin directed the Center to combat information technology crimes. The Royal Thai Police (Royal Thai Police) will crack down on call center gangs in Myanmar, Laos, and along the border.

His directive comes as call center gangs ratchet up their scams to defraud people of their money, causing concern among Thais and jeopardizing the country’s economic and social stability.

Related Police News:

Machete Wielding Man Shot an Killed by Police in Chiang Rai

https://www.chiangraitimes.com/chiangrai-news/machete-wielding-man-shot-an-killed-by-police-in-chiang-rai/

Crime

Thai Immigration Police Arrest Colombian Tourists Over Home Invasions

Immigration police officers have arrested four Colombian nationals in connection with a series of home burglaries at luxury housing complexes in the Bangkok metropolitan area and Chiang Buri Province.

Pol Maj Gen Panthana Nuchanart, deputy commissioner of the Immigration Bureau, told a press briefing that three of the suspects were apprehended in Nonthaburi Province and the fourth in South Pattaya, Chon Buri Province.

According to the Bangkok Post, the Colombians were charged with stealing conspiracy and seized around 3 million baht (US$82,500.00).

According to Pol Maj Gen Panthana, the criminals rode motorcycles through housing estates, scoping out the properties and waiting for the owners to depart before committing their crimes.

He stated that all four of the accused denied any involvement in the home break-ins, but the arresting squad discovered evidence that implicated them.

Police called to home invasion

Meanwhile, police were dispatched to a luxury housing development in Tambon Nong Prue, Chonburi Province, after a Chinese man was attacked during a house invasion.

When they arrived, they discovered the house owner, Mr. Qian Peng Yi, visibly scared and with marks from being tied up with a cable. He informed police that three Chinese males broke into his home at 9 p.m., one of whom brandished a gun at him and directed him to his bedroom.

They bound his hands and feet, gagged him with fabric, taped his head, and forced him into the bed. The intruders then attempted to compel him into transferring 10 million baht in cryptocurrencies to them, endangering the life of his 33-year-old cousin who was in a second-floor bedroom.

While they scoured the house in search of riches, Mr. Peng Yi managed to flee and hide; he subsequently observed them leave with his cousin. Officials investigated the property and analyzed security camera footage from the incident and surrounding areas.

Around 9 p.m., a 30-year-old van driver came at the Bang Lamung police station after being contacted by an agency to carry Chinese customers from Pattaya to Suvarnabhumi Airport.

The driver informed authorities that he was supposed to pick them up at a motel about a kilometer from the Chinese businessman’s home. He then drove them to Bangkok’s Suvarnabhumi airport, arriving at 1 a.m. and receiving 1,800 baht.

The driver took a snapshot of the group smoking at the airport gate and identified one of them as the victim’s cousin. Police suspected coordination between her and the three suspects in her cousin’s heist, who all departed Thailand on the same aircraft.

Other Bangkok News:

Police in Bangkok Discover Six Vietnamese Tourists Dead in 5 Star Hotel

Police in Bangkok Discover Six Vietnamese Tourists Dead in 5 Star Hotel

Crime

Son of Thailand’s Leading Legal Scholar on Corruption Arrested for Running Online Gambling Network

The son of a former senator and leading economist and expert on corruption and gambling in Thailand has been arrested for on charges of running an online gambling network and its payment system.

Police from Thailand’s Technology Crime Suppression Division (TCSD) have confiscated assets worth more than (US$ 11.1 million) 400 million baht.

Narote Piriyarangsan, 33, was arrested following crackdowns in three sites around the city, according to Pol Maj Gen Athip Pongsiwapai, commander of the police Technology Crime Suppression Division (TCSD).

Mr Narote’s father, Sangsit Piriyarangsan, is an economist who has written articles and books about corruption and gambling. He was one of the appointed senators that were investigating the government’s intention to legalize casino gaming before their terms expired.

Police also detained 39-year-old Narayut Narakaew, the owner of the gambling website 69pgslot.com. The Criminal Court issued arrest warrants for the couple for operating an internet gambling service and money laundering.

According to the Bangkok Post, police seized two desktop computers, one laptop computer, 14 mobile phones, 21 bank passbooks, 53 ATM cards, and four high-end cars — a Ferrari 926 GTS, an Aston Martin, a Lexus, and a Subaru — totaling more than 400 million baht.

Police launched the inquiry after discovering the online gambling site, which accepted funds via an automatic deposit-withdrawal system through bank accounts and deposits in the AskMePay system. Players scanned the VPay QR code as well as the QR codes for Heng Online 888 or Heng Pay Company.

Police also discovered that payments received via QR code scans were transferred to the account of Heng Pay Co and then to the gambling website’s mule accounts using AskMePay, which did not use banks’ face recognition scanning. An inquiry indicated a monthly turnover of approximately 5 billion baht.

According to investigators, the website has been up and running for around four years, with the payment mechanism in use for roughly eight months.

According to Pol Maj Gen Athip, Mr Narote owns the gaming website’s payment systems and is the director of Heng Pay Co. After gathering evidence, authorities requested arrest warrants for 14 people.

Thailand does not allow almost any kind of gaming. Even though the law doesn’t say anything specific about online gaming, it is still considered gambling. The country has pretty strict rules about gambling. Thai punters can bet on the national lottery and horse races, but they can’t bet on any other types of games.

But it’s not a secret that there is a huge illegal gaming business in Thailand, even though it’s illegal.

The illegal casinos, online betting shops, underground lotteries, and pop-up bookies that take bets on everything from cockfights to Muay Thai make a shadow economy that is worth billions of dollars every year.