Rawai Raid Uncovers Belarusian Car Rental Scam Endangering Drivers

Tourists may come and go, but the fallout from their activities often stays behind. Phuket police have just dismantled what investigators say is the latest in a string of nominee-driven rental scams—this time run by a Belarusian pair—and the case is likely to reshape how island residents, landlords and even casual investors think about "easy money" from the booming visitor market.

Snapshot

• Two Belarusian suspects arrested after raid on Saiyuan Road, Rawai

• Operation linked to multiple road accidents involving unlicensed foreign drivers

• Business allegedly relied on Thai nominee shareholders to sidestep Schedule 3 of the Foreign Business Act

• Police warn local partners face jail, fines and asset seizure equal to foreign masterminds

• Case joins a rising tally of illegal rental busts involving Russian, Chinese and Israeli operators since 2024

A Pattern of Foreign-Led Car Rentals Skirting Thai Law

Phuket’s wave of “ghost-owned” car and motorbike fleets has grown in tandem with Russian-language Telegram ads and now Belarusian social-media groups promising "no documents, no deposit". Authorities say these ventures have distorted the island’s already crowded transport sector, created uninsured vehicles on the road and, crucially for Thai readers, depressed local earnings for legitimate taxi and rental outfits. Over the past two years, police files document hundreds of seizures of cars and bikes tied to foreigners who never bothered with the permits that Thai entrepreneurs must secure. The Rawai raid is therefore viewed not as an isolated scandal but as the latest symptom of an underground economy that can leave Thai co-investors legally exposed.

How the Belarusian Ring Operated

Investigators describe a slick but simple model: the two Belarusians used messaging apps to arrange daily rentals, collected payments in crypto and cash, and waived any check for an international driving permit. Accident reports eventually traced at least seven collisions—including a New Year’s Eve incident that left a Thai motorcyclist hospitalised—to vehicles from the same storefront. Paperwork listed three Thai citizens as majority shareholders, yet police say none exercised real control. Forensic accountants seized ledgers, CCTV servers and rental contracts, alleging that profits were funnelled to offshore accounts within hours. The Provincial Court has now charged both foreigners with “conducting a restricted service business without authorisation” as defined under the Foreign Business Act, plus the added offence of employing nominee structures to disguise true ownership.

The Legal Risks for Thai “Fronts”

Many locals believe lending a name to an expat friend is a harmless favour; the law sees it differently. Under the Foreign Business Act B.E. 2542, acting as a nominee shareholder in a Schedule 3 venture can trigger up to 3 years in prison, fines reaching ฿1 M and an additional ฿50,000 per day until the illegal arrangement is dissolved. Authorities may also confiscate vehicles, company shares and bank balances tied to the offence. Lawyers in Phuket add that a “front” found guilty can be barred from holding any directorship in the future—effectively blacklisting them from legitimate business. Chalong police have therefore launched a bilingual social-media campaign urging residents to report offers promising “51 % Thai ownership on paper only.”

Safety on the Road: Why It Matters Beyond Paperwork

Road-safety advocates argue the nominee issue is not just about economics. Local hospitals recorded 3,000 motorbike accidents in early 2026, and officials estimate 80 % of injured tourists lacked valid licences. Unauthorised rental shops rarely purchase comprehensive insurance, leaving Thai victims to fight lengthy civil suits. Meanwhile, legal firms that do comply complain they must absorb higher premiums because fly-by-night competitors drive up claim ratios. The Belarusian case, police say, is a textbook example: vehicles involved in two separate crashes had neither first-class coverage nor a registered owner reachable for compensation. For island residents, each illegal renter on the road is one more unpredictable hazard.

Growing Government Scrutiny—and a Wider Crackdown

The Rawai bust follows earlier raids on Russian-owned garages in March 2024, a Chinese luxury fleet in May 2025 and an Israeli-linked operation on Koh Samui. In each instance, authorities uncovered dozens of shell companies with Thai names plus phone apps marketed abroad. The Department of Business Development has since formed a Nominee Task Force that cross-checks shareholder lists with immigration data and digital-wallet flows. One official tells us the agency is exploring block-chain analytics to trace crypto used in rental payments. For legitimate Thai operators, stricter oversight could level the playing field; for would-be nominees, it means diminishing odds of slipping through the net.

What Residents and Visitors Should Keep in Mind

Below is the police-approved checklist the island’s community forums are circulating:

• Verify that any rental shop shows a Thai Business Registration certificate and lists a 24-hour insurance hotline.

• Ask to see the shop’s foreign-business licence if expatriates are behind the counter; Schedule 3 mandates one.

• Insist on a formal rental contract in English and Thai, stamped with the company seal.

• Confirm your own driving licence is accepted under Thai law; photocopies are not enough at police checkpoints.

• If approached to act as a nominee shareholder, consult a lawyer and remember the potential criminal penalties.

Phuket’s allure will continue to attract entrepreneurs—both legitimate and otherwise. The latest arrests serve as a reminder that while the tourism boom brings opportunity, it also demands vigilance from residents who could find themselves unwittingly entangled in someone else’s quick-profit scheme.