Computer Crime and Telephone Scams: Advancing Legal Frameworks with the Second Royal Decree

Introduction:

Following the implementation of the amended Royal Decree on the Prevention and Suppression of Technological Crimes in February 2024, as detailed in our previous article Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud. Thailand has further strengthened its defenses against cybercrime and telephone scams. The Second Royal Decree, which was published earlier, officially took effect on April 13, 2025. This decree builds on the initial framework’s successes while addressing remaining challenges. With daily financial losses now averaging 50–60 million baht, down from 60–70 million baht in early 2024, the need to adapt to evolving cyber threats remains urgent. The new decree introduces enhanced measures to close loopholes, strengthen enforcement, and deepen international cooperation, ensuring a more resilient digital ecosystem for Thai citizens.

The Bank of Thailand (BOT) has continued its proactive role, collaborating with public and private stakeholders to refine compliance mechanisms and ensure accountability across sectors. The Second Royal Decree responds to emerging trends, such as the rise of AI-driven scams, decentralized fraud networks, solicit calls impersonating officials, and the misuse of digital assets, while reinforcing victim protections and stakeholder responsibilities.

Key Provisions of the Second Royal Decree:

1. AI and Deepfake Regulations: The decree introduces specific measures to combat AI-generated scams, including deepfake voice and video fraud. Platforms hosting such content must deploy detection tools and face penalties for non-compliance.
2. Real-Time Monitoring of Transactions: Financial institutions are now required to implement real-time monitoring systems to flag suspicious transactions instantly, preventing funds from leaving victim accounts before scams are detected.
3. Expanded SIM Card Accountability: Telecom providers must verify SIM card ownership more stringently and suspend services linked to scam networks within hours of detection. Additionally, SMS messages containing suspicious links will be blocked to curb phishing attempts.
4. Victim Compensation Fund: A centralized fund, supported by contributions from financial institutions and telecoms, will streamline refunds for victims, reducing delays and ensuring fair compensation.
5. Social Media Accountability: Social media platforms must remove fraudulent content within 24 hours of notification and share data with authorities to track scam origins.
6. Strengthened Extraterritorial Enforcement: The decree enhances mechanisms for pursuing overseas offenders by establishing dedicated cybercrime task forces with international law enforcement agencies, such as AOC 1441, to combat cross-border fraud.
7. Public Awareness Mandates: Financial institutions and telecoms must fund and distribute public education campaigns to inform citizens about scam tactics, including solicit calls impersonating officials, and prevention methods. The Ministry of Digital Economy and Society has launched initiatives to warn citizens about these scams, emphasizing the importance of vigilance.
8. Know Your Customer (KYC) Enhancements for Digital Assets: The decree aligns with industry standards by mandating stricter KYC protocols for opening bank accounts, digital wallets, and other financial services, with a particular focus on digital assets. This measure aims to prevent the creation of mule accounts often used in the trade of digital assets. As of April 2025, the Thai SEC reports that over 200,000 digital wallets linked to fraudulent digital asset transactions have been blacklisted, a significant step in curbing the misuse of these financial tools.
9. Inter-Agency Collaboration: The decree fosters cooperation between agencies like the Thai SEC and other authorities to share information, track scams, and blacklist offenders, ensuring a unified approach to cybercrime prevention. The Thai SEC has been actively involved in identifying solicit calls and fraudulent schemes, particularly those involving digital assets, working closely with the Ministry of Digital Economy and Society.
10. Protection Against Solicit Calls: The decree specifically addresses solicit calls impersonating officials, a growing threat highlighted by the Thai SEC. Citizens are warned not to engage with unsolicited calls requesting personal information or payments, especially those related to digital asset investments, and authorities are cracking down on such scams through targeted investigations and public alerts.

Impact on Stakeholders:

The Second Royal Decree places greater demands on financial institutions, telecom providers, and social media platforms to invest in advanced technologies and compliance systems. Banks must upgrade fraud detection algorithms and adhere to stricter KYC standards, particularly for digital asset transactions, while telecoms are required to enhance SIM verification processes and block suspicious SMS links. Social media platforms face increased scrutiny to curb misinformation and fraudulent ads, including soliciting calls impersonating officials and scams promoting fake digital asset investments. For citizens, the decree promises faster refunds and better protections but underscores the need for ongoing vigilance against sophisticated scams like AI-driven fraud, impersonation tactics, and fraudulent digital asset schemes.

The BOT’s continued oversight ensures that stakeholders align with these regulations, with non-compliance leading to substantial fines and reputational risks. The blacklisting of over 200,000 digital wallets linked to digital asset fraud as of April 2025, as reported by the Thai SEC, marks a significant step toward fraud prevention, particularly for vulnerable populations targeted by scammers. Additionally, the Thai SEC’s warnings about soliciting calls impersonating officials, especially those related to digital assets, have heightened public awareness, encouraging citizens to verify the legitimacy of communications before sharing sensitive information or investing in digital assets.

Global Collaboration:

Recognizing the borderless nature of cybercrime, the Second Royal Decree strengthens Thailand’s partnerships with global entities like INTERPOL, ASEAN cybersecurity networks, and AOC 1441. These collaborations focus on sharing intelligence, tracking cross-border mule accounts, and extraditing offenders, with a particular emphasis on scams involving digital assets. The decree’s extraterritorial provisions empower Thai authorities to target scam hubs in neighboring countries, ensuring no safe haven for perpetrators. The Thai SEC’s involvement in international efforts further enhances these collaborations, particularly in addressing solicit calls and other cross-border scams related to digital assets.

Effective Date:

The Second Royal Decree took effect on April 13, 2025, following its earlier publication in the Royal Gazette. The government has allocated a 60-day transition period for stakeholders to align with the new requirements, with full enforcement expected by June 13, 2025.

Conclusion:

The Second Royal Decree, effective as of April 13, 2025, marks a pivotal advancement in Thailand’s fight against cybercrime and telephone scams. By addressing emerging threats like AI-driven fraud, solicit calls impersonating officials, and the misuse of digital assets, while reinforcing accountability across sectors, the government demonstrates its commitment to safeguarding citizens’ financial security. The BOT’s leadership, inter-agency collaboration with entities like the Thai SEC, and global partnerships further bolster these efforts, creating a robust framework to tackle both domestic and international cyber threats. For more details on the initial framework, refer to our previous article Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud. However, sustained success will require cooperation from all stakeholders—banks, telecoms, platforms, and citizens—to stay ahead of increasingly sophisticated criminals.

Key Takeaways:

• Proactive Evolution: The Second Royal Decree, effective on April 13, 2025, targets new threats like AI-driven scams, solicit calls impersonating officials, and digital asset fraud, ensuring Thailand’s laws keep pace with technological advancements.
• Enhanced Protections: Real-time monitoring, SMS link blocking, and a victim compensation fund prioritize rapid response and fair recovery for scam victims.
• Stakeholder Accountability: Stricter KYC mandates for digital assets, blacklisting of 200,000 digital wallets as of April 2025, and shared responsibility among banks, telecoms, and platforms strengthen fraud prevention.
• Global Reach: Strengthened international cooperation with entities like AOC 1441 and the Thai SEC targets cross-border scam networks, including those involving digital assets.
• Public Empowerment: Mandatory awareness campaigns, supported by the Thai SEC and the Ministry of Digital Economy and Society, equip citizens with tools to recognize and avoid scams, including impersonation tactics and digital asset fraud.
• Swift Implementation: Full enforcement of the second Royal Decree is expected by June 13, 2025.