Thailand is making significant strides toward becoming a cashless society, driven by advancements in digital payment systems, government initiatives, and consumer behaviours. While the rise of a cashless economy spurs trade and fosters financial inclusion, it also provides increased opportunities for digital payment fraud, with fraudsters exploiting the speed and convenience of such cashless transactions.
According to Datos Fraud Experts, who published their top 10 risks for 2024, fraudsters' use of artificial intelligence (AI)-generated attacks tops the list as the number one risk. The study reveals that 81% of fraud executives are concerned that fraudsters using generative AI will outpace current fraud defences, signalling an urgent need for stronger, more adaptive security measures.
Thailand's Digital Economy and Society (DES) Ministry recently reported a significant increase in online fraud cases. From March 1, 2022, to Nov 30, 2024, a total of 739,494 cases were reported, resulting in losses of 77.36 billion baht. In November 2024 alone, 31,353 cases were reported, with losses amounting to 2.54 billion baht.
To address the increasing issue of fraud, the DES Ministry plans to introduce new legislation that establishes joint liability between mobile operators and banks. This proposed law aims to enhance the accountability of financial institutions (FI), especially in cases of fraudulent fund transfers via digital channels. Additionally, mobile network operators will be required to bolster their systems to prevent fraudsters from illegally using their networks. In addition to the legal framework, the DES Ministry is actively raising public awareness about scammers' tactics. This includes educating the public on how to identify and avoid falling victim to online fraud.
Fraudsters are leveraging advanced technology to launch more sophisticated attacks at scale and with precision and speed. They are using AI to boost inherited trust to unprecedented levels -- automating hits and improving scam content, scope, and reach.
Krungthai Card PCL (KTC), one of Thailand's largest non-banks and its best-known credit card provider, provides an example of how AI can revolutionise fraud detection. KTC's challenge was to create smarter safeguards for its vast network of more than 3.3 million account holders and enhance security without adding complexity, requiring extra coding, or causing user friction.
By integrating ACI's AI-powered solutions, KTC exceeded their fraud detection targets by more than 85%, significantly curbing financial losses and improving overall fraud management capabilities. KTC also enhanced their cash-out scam detection rates by combining transactional, behavioural, and contextual data. This approach led to a 1.5x improvement in detection rates, increasing from 33% to 50%.
Additionally, the tailored models deployed by KTC effectively identified card-not-present fraud in overseas transactions. These models kept pace with the rising trend of global e-commerce, ensuring that cross-border transactions remained secure.
Thailand's transition to a cashless economy is not merely an economic transformation -- it is a trust revolution. The impact of fraud extends beyond financial losses. According to ACI's 2024 Scamscope report, one in four scam victims will leave their current FI, underscoring the critical need for FIs to protect customers and maintain trust. In response, banks can raise their game by using AI to analyse current transaction signals and behaviors to make decisions based on immediate risks as well as to predict and preempt emerging risks. To stay ahead of evolving threats, collaboration among FIs, regulators, and technology providers is vital.
As KTC's success demonstrates, investing in AI-powered fraud prevention mitigates risks, enhances operational efficiency, and safeguards brand reputation. Connecting AI systems across the ecosystem can share predictive intelligence rapidly across sectors, enabling faster fraud detection, better customer experiences, and increased operational value. By leveraging AI ethically to tackle fraud, we can build trust, ensure safety, and drive the wider adoption of digital payments to support Thailand's thriving cashless economy.
Leslie Choo, Senior Vice President, Managing Director at APAC, ACI Worldwide