Thai Police Dismantle Chinese Fraud Rings in Chiang Mai Raids

Luxury Villa Hideout Exposed

Chiang Mai police have apprehended several individuals connected to two major online fraud schemes, uncovering extensive operations that victimized individuals through deceptive investment platforms and money mule activities.

Nationwide Cybercrime Crackdown Intensifies

Inspector General of the Royal Thai Police and director of the Police Cyber Taskforce, General Thatchai pitaneelaboot, announced on July 21 that the country is currently engaged in a significant ramp-up of efforts against cybercrime. This follows a crucial coordination meeting on July 18, where inter-agency representatives reviewed recent operations and issued directives for ongoing enforcement.

Elderly Targeted in Sophisticated Scams

One high-profile operation targeted a lavish pool villa in Chiang Mai’s Hang Dong district. Provincial Police Region 5, acting on intelligence, raided the property to find 14 Chinese nationals, including 11 men and three women, alongside three Myanmar nationals. The group is accused of running a sophisticated online gambling and investment scam specifically aimed at Chinese citizens aged 60 to 80.

Authorities seized 10 desktop computers and 26 mobile phones, which were allegedly used to operate fraudulent platforms. Investigators revealed the syndicate used Thailand as a base for a call centre operation, persuading victims to invest via mobile applications. Once funds were transferred, contact with the victims was immediately cut off.

This operation had reportedly relocated from the San Sai district to Hang Dong under the direction of a Chinese national ringleader, a move that followed a police crackdown on another Chinese-run scam in San Sai on June 16.

Visa Exploitation Under Scrutiny

Forensic analysis of confiscated equipment indicated that many suspects entered Thailand using tourist or student visas. Significantly, individuals on student visas often could not identify the institutions they claimed to attend. Further investigation revealed that at least five universities in Chiang Mai had issued student visas to over 13,000 Chinese nationals, suggesting a potential exploitation of the visa system for illicit activities.

Preliminary estimates suggest that these operations have defrauded over 100,000 Chinese victims, with losses exceeding 100 million yuan (approximately S$17.9 million). All apprehended suspects are currently in custody facing charges for public fraud and involvement in transnational criminal networks. Authorities plan to collaborate with the Chinese consulate for further verification and to broaden the investigation.

Money Mule Network Uncovered

In a separate incident, Chiang Mai Provincial Police arrested three individuals—a Thai woman and two Chinese men—linked to fraud and computer crimes. These arrests were executed under a warrant from the Chiang Mai Provincial Court following reports of an altercation outside an ATM at a shopping mall, where officers discovered over 2.6 million baht (approximately S$103,000) in cash.

The investigation revealed this trio was part of a larger scam orchestrated by a Chinese mastermind, targeting both Chinese and Thai nationals with fraudulent investment schemes. The two Chinese men were reportedly responsible for managing money mules who facilitated fund withdrawals and deliveries. The Thai woman, acting as a money mule to settle debts, was apprehended during the operation. Authorities are working to expand their investigation to uncover the full extent of this criminal network.

Combating Online Crime: A Multi-faceted Approach

General Thatchai underscored the growing threat of online crime due to rapid technological advancements, highlighting “money mule” accounts as a primary method for laundering illicit funds and defrauding the public. He stressed the need for a comprehensive strategy and cross-sector cooperation.

“The key to combating online crime is intercepting it at the source. This includes addressing the use of companies as channels for money laundering and the opening of money mule accounts, both by Thai citizens and foreigners, which are exploited in criminal activities.”

—General Thatchai pitaneelaboot, Inspector General of the Royal Thai Police

Police are intensifying measures to monitor financial transactions, particularly illegal cross-border withdrawals and transfers. The General also emphasized preventing Thai nationals from falling victim to or becoming accomplices in overseas call centre scams by illegally crossing borders for work. According to a 2023 report by the United Nations Office on Drugs and Crime, cybercrime, including online fraud, continues to be a significant global challenge, with criminal networks increasingly leveraging cross-border operations.

The police are committed to establishing clear protocols for the repatriation of Thai nationals involved in such activities, ensuring efficient, humane, and rights-respecting handling of these cases to expedite legal actions.