Thailand banks lose millions to fraud annually, research finds

By Vriti Gothi

Banks in Thailand are facing mounting difficulties in identifying coordinated money laundering and fraud networks operating across financial institutions, according to a new industry survey commissioned by BioCatch.

The survey of fraud management, anti-money laundering (AML), and compliance leaders at Thai banks found that 87% of respondents said their institutions struggle to detect money mule accounts, particularly when such networks operate across multiple banks. At the same time, 78% of C-suite respondents reported rising fraud losses, highlighting the scale of the challenge facing financial institutions in the country.

“Of the 12 geographies we surveyed, the scale of fraud losses reported in Thailand stands out,” Thomas Peacock, Director of Global Fraud Intelligence at BioCatch, said. “Four in five Thai banking leaders say their organisation loses more than $5 million (155 million baht) to fraud every year. That’s well above other countries surveyed in the region and exceeds the global average. All C-level executives surveyed in Thailand placed their bank’s annual fraud losses above this threshold, and 55% reported annual fraud losses of greater than $10 million (310 million baht).”

The findings highlight operational challenges faced by banks in detecting complex fraud networks that move funds rapidly across institutions. The growing adoption of instant payment systems has further reduced the window for banks to identify suspicious activity before transactions are completed.

Nearly 92% of respondents identified real-time payments as a moderate or very high fraud risk, reflecting concerns that instant transfers can be exploited by scammers and organised criminal networks.

The survey also indicates that many institutions view their existing fraud defences as insufficient. Around 39% of respondents rated their current fraud controls as ineffective, scoring them five out of ten or lower. However, most banks appear to be exploring improvements: while only 10% said their institutions are currently upgrading fraud systems, 85% reported that their organisations are evaluating new fraud detection technologies.

“Thailand is facing a level of coordinated fraud, scams, and inter-bank mule activity we simply haven’t seen before,” Madee Santichaianan, Thailand Country Manager, BioCatch, said. “Instant transfers, remote-access scams, and criminal networks operating across borders have compressed the time we have to protect customers to just seconds. This survey shows what many of us feel every day: The risk is bigger than any single bank, and solving it will require earlier detection, stronger collaboration, and a more unified approach across the entire Thai financial ecosystem.”

Behavioural analytics is emerging as one approach banks are considering to address the problem. The survey found 76% of respondents said their institutions are either already using behavioural-based fraud detection tools or evaluating their adoption.

Operational constraints also remain evident. Fewer than one-quarter of banks said they can fully investigate fraud cases within a day, suggesting that investigative processes may struggle to keep pace with the speed of modern payment systems.

Beyond direct financial losses, the reputational consequences of fraud are also a major concern. Nearly three-quarters of respondents said reputational damage from fraud and scams represents a greater risk than the financial impact itself, underlining the growing importance banks place on customer trust as digital payments adoption continues to expand.