Financial Crime World

Credit Card Fraud Statistics in Taiwan Reach Four-Year Highs

Bank losses from credit card fraud have surged to four-year highs in Taiwan, with account takeovers and stolen cards being the most common forms of fraud. According to data released by the National Credit Card Center (NCCC), there were significant increases in credit card fraud cases in August.

Account Takeovers: The Most Common Form of Fraud

  • 58,809 cases of account takeovers reported in August
  • Resulted in losses of NT$234.75 million (US$7.63 million)

Account takeovers and stolen cards are the most common forms of credit card fraud. In August, there were a significant number of account takeover cases, resulting in substantial losses.

Stolen Credit Cards: A Growing Concern

  • Losses from stolen credit cards jumped to NT$3.22 million
  • 245 transactions involving stolen credit cards reported in August
    • Second-highest this year after March’s 380 cases
    • Average amount of fraudulent transactions was NT$13,145, an increase of 15 percent from July

The number of transactions involving stolen credit cards has been rising, with a significant spike in August. Thieves can use stolen credit cards to make purchases or obtain cash advances.

Types of Credit Card Fraud

  • The NCCC divides credit card fraud into eight types
  • Losses from stolen cards ranked fourth last year after account takeovers, counterfeit cards, and lost cards
    • While losses from stolen cards have seldom surpassed NT$2 million per month in previous years, the number reached NT$2.29 million in March

The NCCC collects data from 36 card issuers in Taiwan and issues monthly tallies.

Attribution of August’s Spike in Credit Card Fraud

  • A single theft was attributed to the spike in August
  • Thieves can use stolen credit cards to make cash advances, but it is harder to do so as they also need a password

The Financial Supervisory Commission (FSC) official, surnamed Liu, explained that thieves can use stolen credit cards to make cash advances, but it is harder to do so as they also need a password.

Future Action Plan

  • The NCCC will continue to monitor the data from September and last month
  • Take action if necessary
    • NCCC spokesman Hanover Chu said, “We will continue to monitor the data from September and last month, and take action if necessary.”