Banks told to step up scam vigilance

The Securities and Exchange Commission (SEC) has urged banks to tighten their account opening procedures and enforce stricter know your customer standards, stressing that early intervention is crucial in blocking scammers who exploit mule accounts for money laundering and fraud.

- NUNTAWUN POLKUAMDEE

Anek Yooyuen, deputy secretary-general and spokesperson for the SEC, said authorities are investigating whether illicit funds could have been funnelled through cryptocurrencies.

"Crypto remains a likely channel due to its speed and anonymity as fraudsters exploit technology to bypass oversight. Once money enters a bank account, it can be converted into crypto, moved into a private wallet and transferred almost instantly," he said.

"Private keys make it extremely difficult to trace."

Unlike stock trading, crypto transfers can be completed in fractions of a second, which makes the banking system the first line of defence, said Mr Anek.

Mule accounts may involve both unsuspecting victims and participants in intentional romance scams, he said.