Since the development and remarkable evolution of information technology, the world is going digital. Additionally, the convenience, economic solutions, competitiveness, and speed of digital operations prompts businesses like banking, to adopt or go online. Thailand is one of the countries that has kept up with the trend. However, the fact is that its electronic transaction law is still in its infancy. It faces significant liability difficulties at this stage. This article will cover the aspects of Online Banking in Thailand.
Slightly Behind Other Asian Countries
According to Pew Internet and American Life, the United States is the most active internet user. Another report suggests that internet use has spread throughout Asia, with Thailand lagging behind. For a variety of major impediments to internet banking, the adoption of the practice has lagged behind that of other Asian countries.
System security, a lack of trust in service providers, and questionable internet service providers are among them. Thai banks may be able to overcome these obstacles. But, customers are unable to use online banking due to a lack of suitable laws. There are also other dangers to consider.
Online Transaction Risks
Various cyberattack methods can trick users of online banking in Thailand. One online banking risk is a series of phishing emails designed to trick an internet user. It can divulge his or her login information and transaction number. Moreover, the sender poses as a bank employee.
Another method is to transmit malware or viruses that can track the user’s keystrokes or even snap images of transactions.
Therefore, the greatest risk is to transact carelessly at internet cafes or to fail to effectively protect crucial banking information. When data is properly destroyed after usage, the next internet user can safeguard the data and conduct criminal activity.
There are also operational hazards to consider. These can include a lack of security measures, a shoddy system design, a failure to deploy and monitor the bank’s own information system, shoddy software design, or successful hacking by a cyber expert.
Rapid technical advancements, which are widely available, amplify these dangers. The bank, the depositor or customer, and other persons or companies, all share financial losses caused by internet banking. As a result, precise regulations must be put in place to preserve the practice.
Regulations
The Bank of Thailand (BOT) is in charge of overseeing all Thai banks and services, including internet banking. It creates the framework and environment necessary to meet the banking needs of the country’s financial and business sectors.
The Commercial Banking Act, B. E. 2505, contains the legislation and regulations that govern internet banking. It includes a section on bank licence and commercial bank activities, as well as the Electronic Transaction Act and Electronic Payment Service, as well as regulations from the Bank for International Settlements or BIS Commission, 2011.
A Thai bank is required by the BOT to build up and maintain an efficient system that ensures the security of internet transactions. At the same time, the bank must safeguard its services from unauthorised access and penetration. These criteria are designed to increase the trustworthiness and suitability of electronic or digital transactions while reducing or eliminating hazards that could harm users’ transactions and the public interest. Furthermore, these criteria and standards are aimed at improving the quality of Thai financial and payment services, particularly in the international community.
The usage of online banking in Thailand is, on the whole, a contract. The terms and conditions for using electronic services differ from one bank to the other. However, it explicitly states the customer’s responsibilities. These essentially consist of ensuring his or her own sensitive financial information, securing his or her user ID and PIN, and notifying the bank of any inaccuracies as soon as possible. A clause on the bank’s liability and limitation is also included in the contract, which the customer must carefully read and comprehend as it is a critical part of any liability problem situation.
Banker’s Liability
Everyone knows that liability refers to a person’s legal obligation or accountability for his or her own actions or omissions. Either act can lead to a lawsuit and the payment of damages or the performance of a specific act of a court order.
The liability in internet banking has an explicit definition and specification in the Internet Service Agreement, which varies among institutions. Human error, fraud, technical malfunction, and system failure can all result in liability.
The customer or a bank employee can both make mistakes. Passwords and PINs are among the measures ensuring confidentiality and security. The bank performs transactions and enacts these safeguards in good faith, ensuring that each transaction is valid after completion. Errors can still occur if a customer gives a third party access to his information. and transacts on his or her own due to carelessness or neglect.
Without the knowledge of the bank, any misses, errors, or losses of cards or other documentation is not the banker’s liability. The bank will refuse accountability in certain situations.
Despite the use of high-end security technologies, fraud can and does occur. Phishing emails, the Trojan horse virus, and other infections aim to steal data are common practices of fraudsters.
Technical failures or system failures can occur within or outside of the bank’s control. However, because time is of importance, it must alert customers as soon as possible. If the method of notice is beyond the bank’s control, such as a failure to notify customers immediately, the bank will not be liable.
Recent Developments
Thailand’s electronic transaction law is new and has just recently come into effect. As a result, it may take some time to show that it is effective in protecting internet banking consumers. In the meantime, security and safety should be the bank’s and the customer’s equal obligation and interest. As a customer, you must know the contract’s terms and conditions, protect their personal data and transactions. You should also ensure that the information is always accurate. Additionally, you must avoid using public internet cafés, ignore phishing emails, and keep their antivirus software up to date.
The Bottomline
It is always wise to look for the greatest security for your hard-earned money. We should never forget that even the nations with the most secure online banking infrastructure face cyber attacks from hackers and spammers. Thailand is very rapidly adopting digital technology interfaces for various industries, including banking.
But whether online or not, you must have a bank account for your personal and business needs in Thailand. For all types of assistance in the process, mail us at [email protected]. We will help even if you are a foreigner.
