Upcoming Entry into Force of Thailand’s Strengthened Technology Crime Prevention Law

In response to the increasing severity of crimes involving technology, the Thai Cabinet has approved an amendment to the Royal Decree on Measures for the Prevention and Suppression of Technology Crimes (via the Draft Royal Decree on Measures for the Prevention and Suppression of Technology Crimes (Edition ..) B.E. ....), as proposed by the Ministry of Digital Economy and Society. This decision follows alarming reports indicating that Thai citizens collectively suffer financial losses ranging from 60-70 million THB per day due to cybercrimes. The original decree was found to lack sufficient enforcement measures, particularly with regard to account suspension on Peer-to-Peer (P2P) platforms, reimbursement processes for victims, and the liability of relevant parties.

With these concerns in mind, the newly proposed amendment introduces five significant revisions aimed at closing legal loopholes and enhancing enforcement mechanisms. This amendment is expected to come into force in February 2025 or soon thereafter.

Key Highlights of the Draft Law:

1. Strengthened Responsibilities for Government Agencies and Service Providers

• Government agencies and mobile service providers will be granted the authority to suspend or terminate phone numbers linked to suspicious activities, enhancing response times for fraudulent transactions.

2. Expedited Compensation for Victims

• A new transaction oversight committee will oversee reimbursement procedures, to ensure victims of cyber fraud receive their funds swiftly, eliminating delays that previously required lengthy legal proceedings.

3. Stricter Oversight on Digital Assets and Transactions

• The new regulation prohibits the trade and exchange of digital assets through Peer-to-Peer (P2P) lending platforms.
• Digital asset service providers will be required to reject requests to open accounts by, and to suspend transactions involving, individuals flagged for involvement in financial crimes.

4. Increased Penalties for Cybercrimes

• The law imposes stricter penalties on technology crimes, including online fraud, unauthorized data sales, and money laundering using digital assets.
• Operators who engage in illicit digital transactions will face up to one year in prison or fines up to 100,000 THB, or both.
• Individuals involved in illegal online gambling will be subject to up to five years in prison or fines up to 100,000 THB, or both.
• Unauthorized sales of personal data will carry penalties of up to five years in prison or fines up to five million THB, or both.

5. Increased Accountability for Financial Institutions and Online Platforms

• Financial institutions, telecom service providers, and social media platforms will bear legal responsibility for financial losses suffered by victims due to fraudulent activities conducted via their services.

Cybercrime in Thailand has surged in recent years, with data showing that from October 2023 to November 2024, more than 402,542 cases of online fraud were recorded, which resulted in 42.6 billion THB in damages. Criminal activities such as impersonation scams, phishing attempts, fraudulent investment schemes, and call center frauds have evolved rapidly, rendering the existing legal framework inadequate.

Given these escalating threats, the proposed amendment is designed to modernize enforcement mechanisms, expedite victim compensation, and enhance public and economic security through proactive legal interventions.

With the amendment’s anticipated upcoming entry into force, businesses, financial institutions, and service providers must ensure compliance with the new regulatory requirements. 

Nuttaros Tangprasitti
Partner
Natrada Ruangwuttitikul
Attorney-at-Law

Authors