Financial chaos erupts in Thailand as security and bank authorities freeze thousands of accounts, halting businesses, trapping innocent citizens and sparking public outrage. At the same time, officials scramble to track scam-linked funds and restore frozen access quickly.
Thai security and bank officials scrambled Sunday to reverse chaos caused by new powers under a royal decree and the 2023 Computer Technology Act. Intended to stop scams and track mule accounts, the measures have frozen legitimate accounts, including critical business transfers. One trader lost account access over ฿860, another had ฿169,000 locked. Thousands complain of onerous paperwork just to reclaim their own funds. Public anger is mounting as innocent people suffer, lives are upended and daily routines grind to a halt. Prominent lawyers warn of lawsuits for financial losses and trauma suffered by innocent victims.
The Bank of Thailand (BoT) warned Sunday that more bank accounts could be frozen as investigations widen. Authorities are tracing transfers linked to mule accounts. Previously, officials promised to resolve confusion, but Assistant Governor Darunee Saeju confirmed the freezing process will continue. Consequently, even more accounts are at risk.
Traders across Thailand reported their accounts stopped functioning. Moreover, some suddenly showed negative balances. Experts explained this happens when funds linked to scammed money land in another person’s account. Therefore, ordinary citizens face financial disruption despite being innocent.
Small and large account freezes are creating concern for genuine account holders and traders across Thailand
One merchant revealed a business account had been frozen over a deposit of just ฿860. Another reported ฿169,000 was locked after a transfer from an unknown source. These examples illustrate how ordinary people are caught in sweeping policies. Furthermore, the issue threatens confidence in the country’s banking system.
Despite assurances that a hotline is available, affected account holders report arduous processes to reactivate accounts. Additionally, repeated paperwork and long waits burden ordinary citizens. Officials from the Digital Economy and Society Ministry, the Technology Crime Suppression Division (TCSD), and the Thai Bankers Association defended the freezes. They argue that actions are valid under the 2025 Royal Decree on Measures to Prevent and Suppress Technology Crime, Sections 6 and 7. Likewise, the 2023 Technology Crime Act justifies their decisions.
Meanwhile, businesses are increasingly reverting to cash transactions. Many merchants post signs reading “No transfers, cash only” to avoid unexpected account freezes. Consequently, citizens are withdrawing cash to mitigate risks beyond their control. Some report holding funds physically to ensure access.
Ms Darunee of the central bank explained that a technical error on September 1 caused incorrect account balances. Some banks failed to update end-of-day transactions. Therefore, outdated balances appeared, creating confusion and negative figures. Banks corrected the issue the following day and were instructed to compensate affected customers.
Police orders to freeze accounts causing negative balances and frustration for innocent account holders
Additionally, police orders to freeze accounts suspected of fraud contributed to negative balances. In some cases, the frozen amounts exceeded actual balances. Thus, innocent account holders unexpectedly saw negative figures. Banks were asked to clarify these cases directly with customers, but delays and poor communication persist.
Darunee stressed that freezing accounts is vital to track and return stolen funds. Authorities claim that improving freezing and unfreezing procedures ensures scammers are dealt with effectively. Furthermore, they emphasised that ordinary citizens should not be impacted. Agencies pledged to speed up fund releases for verified innocent individuals. Customers are encouraged to call the BoT hotline at 1213 for unresolved issues.
The Anti-Online Scam Operation Centre (AOC) coordinates with commercial banks to trace and recover stolen funds. So far, only accounts receiving money from mule accounts have been frozen. Nevertheless, as investigations expand, more people may be affected. Discussions between BoT, AOC, and banks aim to reduce harm to innocent account holders. New measures could be introduced immediately following these talks.
Lawyers strongly criticise the sweeping freezes. Attorney Decha Kittiwittayanan called the measures violations of citizens’ rights. Nitithon Kaewto, also known widely as Attorney James LK, proposed that only relevant amounts be frozen, not entire accounts. Likewise, Attorney Ronnarong Kaewpetch emphasised that banks cannot freeze accounts without a court or Anti-Money Laundering Office order. Otherwise, freezes could be illegal, and victims may file civil lawsuits for damages.
Social media and procedural flaws are worsening confusion and undermining trust in the banking system
Social media has amplified the issue. Posts highlight procedural flaws. For example, calling the AOC 1441 centre can trigger an automatic three-day freeze without verification. Information is entered into a system and converted into “H Notices” by the TCSD. Subsequently, banks receive instructions to freeze accounts along the money trail. Often, frozen account holders are redirected repeatedly between police and banks, leaving them uncertain.
The account freeze drama has caused nationwide chaos. Shops and merchants face disruptions. Many are unsure when their accounts will unlock. Some businesses report spending tens of thousands on repeated paperwork, printing, and travel.
Furthermore, prolonged account freezes prevent normal operations. Citizens withdrawing large amounts of cash demonstrate public distrust in the banking system.
Professor Wisit Wisitsora-at, Permanent Secretary of the Ministry of Digital Economy and Society, chaired a meeting to review temporary revocation measures. Suspensions affect accounts linked to fraudulent mule accounts.
Coordination between BoT, TCSD and banks aims to expedite investigations and unblock honest accounts
The meeting included BoT, Thai Bankers Association, AMLO, and TCSD representatives. Its purpose is to expedite investigations and unblock accounts of innocent account holders.
Thousands of calls from account holders have been recorded, with more coming in hourly. These measures aim to block fraudulent accounts, track financial transactions, and recover stolen proceeds. They operate under the Emergency Decree on Measures to Prevent and Suppress Technology Crime (No. 2) B.E. 2568 (2025), Sections 6 and 7.
Under the decree, banks can suspend only transferred amounts from suspicious accounts, not entire accounts. Transactions in other parts of the account continue as normal. Full account seizures require court or police warrants under the Criminal Procedure Code. The TCSD can revoke temporary suspensions for verified innocent citizens through the AOC 1441 centre.
A joint coordination centre now operates between TCSD, BoT, commercial banks, and police officers. This centre reviews financial patterns to distinguish normal transactions from suspicious ones. Accounts verified as uninvolved in scams are being unlocked. Citizens may call the AOC Centre at 1441, press 2, to request revocation of suspensions and restoration of access.
Hotline and public scrutiny continue as confidence in digital banking faces intense pressure
Hotline services remain operational, but criticism persists. Many victims report difficulty reaching staff or repeated transfers between departments. Consequently, confidence in Thailand’s digital financial systems is declining. Systems once promoted as “safe and convenient” now appear risky for ordinary users.
Public scrutiny continues to intensify. Social media pages are amplifying coverage. Citizens closely monitor procedural fairness. The crisis highlights the tension between crime prevention and the protection of lawful citizens. Critics argue that partial freezes on suspicious amounts, rather than entire accounts, would reduce harm.
The Ministry of Finance acknowledged the impact on citizens while blocking mule accounts. Meanwhile, the AOC Centre works to unlock affected accounts. Citizens uninvolved in illegal activity can contact the centre to restore account access. Authorities stress these steps are necessary to track fraudulent transactions and recover funds.
The ongoing crisis demonstrates the difficulty of balancing enforcement with citizen rights. Expanding account freezes without safeguards risks eroding confidence in digital payments. Citizens are increasingly reverting to cash, which could slow Thailand’s transition to a digital economy.
Verified innocent accounts are being unlocked as authorities coordinate to ensure proper enforcement
Professor Wisit confirmed that temporary suspensions are being expedited. Accounts of verified innocent individuals are being unlocked. Banks will notify account holders once TCSD orders are issued. The AOC processes complaints but does not contact the public directly to avoid fraudulent claims.
Authorities argue that these measures block financial flows of online criminals who harm citizens. At the same time, they are improving procedures to ensure innocent individuals are unaffected. Coordination between BoT, commercial banks, TCSD, and AOC allows careful monitoring of investigative and corrective measures.
The public reaction remains intense. Merchants report disruptions to digital transactions. Citizens withdrawing cash show declining trust in banking. Lawyers continue to question the proportionality and legality of account freezes.
BoT and TCSD emphasise that account freezes are essential to return funds to scam victims. Officials also highlight ongoing efforts to streamline freezing and unfreezing procedures. Hotlines remain active, but efficiency and effectiveness require improvement.
BoT continues meetings to adjust procedures while balancing crime prevention and citizen protection
BoT continues meetings with agencies and banks to adjust procedures. The central bank aims to protect innocent account holders while preventing scammers from accessing funds. Authorities expect updates and improvements as investigations continue.
Extraordinary powers granted under the decree remain in effect. However, citizens remain cautious. The crisis reveals the challenge of balancing digital financial innovation with crime prevention. Authorities face mounting pressure to ensure security measures do not unduly impact lawful citizens.
Banking crisis as security overreach limits large numbers of personal and business bank accounts
The account freeze issue has highlighted gaps in verification, communication, and legal safeguards. Security and financial officials stress that transparency and timely resolution are vital to restore public trust. Meanwhile, burnt citizens are moving back to cash and alternative payment methods. The trauma of having a bank account frozen is real and, in turn, gives rise to insecurity in the financial system.
The ongoing crisis is a stark reminder of the consequences of prioritising law enforcement over citizen rights. If unresolved, public confidence in Thailand’s financial systems may decline significantly. On Sunday, officials claimed corrective measures were underway, but the long-term impact on commerce, trust and digital adoption remains uncertain.
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