Four suspects were arrested by the Crime Suppression Division (CSD) on charges that they lured victims to buy the snack Milo Cube through Facebook and Line and then did not supply the trendy snack.
The four suspects were identified as Wutthiphong Hemmala 24, Narisara Limchai, 24, Navapol Limcai, 19, and Watcharin Chanhom, 29.
Police presented them at a press conference on Sunday.
The suspects, who were arrested at their houses in Ratchburi province, were charged with fraud and spreading false information on a computer.
The suspects confessed to all charges.
The group opened a Facebook page for "sell" the snack at a cheaper price.
Normally, a box of the snack costs Bt7,500 (S$305) but the group advertised it for Bt6,000, police said.
According to CSD chief Pol Maj-General Sutin Sappuang, at least seven victims were tricked into transferring money to buy the cubes through Facebook but they did not get the goods and then could not contact the sellers.
They were duped out of between Bt200,000 and Bt300,000 in total, he said.
Police urged any other victims cheated by the group to file complaints.
The CDS warned people who bought products on social media to examine the background of online sellers before transferring money, especially when the products were sold at a much cheaper price.
Since early this year, the cute little snack Milo Cube has trended on social media in the region, with netizens selling it in Singapore, Malaysia, Brunei and Thailand, where the "viral" product is not officially available.