The sting, which targets tourists at some beaches across the country including Phuket and Pattaya, sees travellers forced to pay hefty compensation for damage to jet skis that they did not actually cause.
While the scam has been going on for years, there have been an increasing number of violent threats against tourists who dispute the fee, with locals warning that it is only a matter of time before someone is killed.
Earlier this week a group of Australians holidaying in Phuket fell victim to the scam. The distressed Melbourne group spent two hours arguing a 56,500 baht ($1800) fee for “damage” to four jet-skis they say they did not cause, before eventually paying up and leaving in tears.
''The jet-skis were all in the water when we hired them,” a member of the Melbourne group said.
“We didn't have the opportunity to see if there was already damage underneath.''
During another incident in November a knife was pulled on an Irish tourist in Pattaya after he refused to pay for alleged damage to a jet ski.
The Department of Foreign Affairs and Trade warns of the scam on its website, highlighting Phuket as an area of concern.
“Some travellers have reported that, after returning hired jet skis, they have been confronted by gangs claiming that the tourist damaged the jet ski,” the website states.
“There have been reported instances of such gangs threatening violence, including at knifepoint, if a large sum of money in compensation for the alleged damage is not paid."
Pattaya local Colin told news.com.au that he “strongly advises not hiring a jet ski in Thailand” due to the increasing threat of violence and rip-offs.
“I live here and everyday I see tourists being ripped off over so-called damage done to the ski,” Colin said.
“Rich and powerful men run the jet ski business and the police assist the scammers to get their money off the tourists.
“There are assaults every day and it is only a matter of time before someone is killed.”
The groups behind these scams often carry weapons such as knives, machetes and firearms, Colin warns.
Those hoping the police will help have reportedly been left disappointed, with allegations they are often involved in the scams.
Reports of the jets ski scams have flooded the local press and residents have posted messages warning of the scam onto websites such as TripAdvisor.
Most do not want to be named due to fears for their safety.
“They demanded 77000THB ($2500) and said they would call the police, I said I was more than happy for the police to come and sort it out. When I said this they went crazy and tried to fight us, taking out knives,” one blogger said.
Another blogger said some tourists have tried photographing the jet skis before renting them but many jet skis now come painted in water soluble paint.
“The jet ski looks good on dry land but washes off after about half an hour to reveal a nasty gash below the surface,” they posted.
The overall message to tourists wanting to jet ski in Thailand is to be cautious



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