Scams know no limits
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Scams know no limits

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For decades, Thailand has been plagued by financial scams, often in the form of Ponzi schemes, leaving countless citizens financially devastated. The evolving sophistication of these scams, driven by advances in digital communication and legal loopholes, continues to outwit all consumer protection enforcers.

The latest racket involving The iCon Group, a pyramid scheme promoted by Thai celebrities, is a glaring example of the damage these operations inflict. Some 500 individuals have filed complaints with the Consumer Protection Police Division, reporting losses close to 200 million baht. Unfortunately, the number of victims continues to rise, with more coming forward daily.

The iCon Group operated under the guise of a legitimate online platform selling skincare and food supplement products. The core of its business revolved around recruiting new members into a pyramid-like structure. Celebrities were hired to boost the image of the company and its products, luring the public into the scheme, starting with signing up people for online marketing courses priced as low as 97-99 baht.

During these courses, the company encouraged participants to invest heavily in the business: initial investments often reached 250,000 baht, with some victims pouring in millions. Many of these individuals were swayed by their trust in the celebrities and the promise of wealth, only to find the products unsellable and their investments unrecoverable.

After the news came to light, these celebrities told the public they were merely presenters and had no knowledge of the company's business activities. Such excuses are unconvincing and unforgivable. These individuals built their fame on public trust and are morally obligated not to exploit that trust for personal gain. The authorities must investigate their involvement and hold them accountable if they are found to be complicit.

This is not the first time suspicions have been raised about The iCon Group. As early as 2018, the Office of the Consumer Protection Board (OCPB) received a report highlighting concerns about the company's operations, questioning whether it fit the definition of a pyramid scheme.

The OCPB urged state agencies to investigate The iCon Group's business practices. They included the Fiscal Policy Office under the Finance Ministry, the Royal Thai Police and the Food and Drug Administration (FDA). Despite these early warnings, the issue was allowed to fade into obscurity, only to reemerge as a full-blown crisis currently.

Thailand's passive legal enforcement framework is partly to blame for allowing such schemes to proliferate. The country's adversarial legal system relies on complaints being filed before investigations can begin rather than taking a proactive approach to prevent these schemes from gaining traction. This reactive stance opens the door for scammers to evolve and exploit new loopholes in the ever-growing digital economy.

Using celebrities to endorse and participate in these schemes highlights a troubling trend in Thailand's scam culture. These scams gain unwarranted credibility by elevating these public figures to executive positions within companies. Yet when things go wrong, the same figures often distance themselves from responsibility. This behaviour is unacceptable.

Instead of waiting for victims to emerge before acting, authorities must prioritise preventative measures and close the legal loopholes that allow these schemes to operate under the radar.

Editorial

Bangkok Post editorial column

These editorials represent Bangkok Post thoughts about current issues and situations.

Email : anchaleek@bangkokpost.co.th

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