Title: “Record Number of Financial Crimes Reported in Taiwan: A Warning Against Cryptocurrency Scams and Unverified Sources”
Over 24,800 incidents of fraud reported between April 2021 and January 2022
The Financial Supervisory Commission (FSC) reported over 24,800 incidents of fraud between April 10, 2021, and January 31, 2022.
Key Points:
- Collaboration with tech giants Google and Facebook parent Meta led to banning of fraudulent users and removing fraudulent platforms.
- Highest number of reports in January 2022 with 5,203 incidents.
- Deputy Director of the Securities and Futures Bureau, Kao Ching-ping, urged caution about online investment groups and cryptocurrency investments.
Rising instances of breaches of the Securities Investment Trust and Consulting Act (證券投資信託及顧問法)
Deputy Director Kao warned against easy money through online investment groups promoting cryptocurrency investments. A gradual increase in potential breaches of the Securities Investment Trust and Consulting Act was also reported.
Last Year’s Statistics:
- Record 787 incidents of breaches, a 27% increase from the previous year.
- 69 fraud complaints in February 2022, up from 42 during the same period in 2021.
Financial Institutions Tackling Fraud
Financial institutions, such as Fubon and Cathay Financial Holdings, took steps to protect their customers from potential fraud.
Some Actions Taken:
- Fubon Group removed 299 fraudulent items from social media.
- Cathay Financial Holdings prevented 1,802 fraud attempts and prevented the loss of NT$1.28 billion (US$40.82 million).
Penalties for Breaching Regulations
The Banking Bureau took actions against financial institutions that breached regulations.
Penalties:
- CTBC Bank was fined NT$125,000 for employees accessing client information in violation of the Personal Data Protection Act.
- Ta Chan Securities was fined NT$540,000 for various regulatory non-compliance.
- SinoPac Securities was fined NT$480,000 for recording investment orders without specific client instructions.
Public Urged to Report Suspected Fraudulent Activities
As financial crimes continue to rise, the public is urged to take necessary precautions, such as avoiding unknown online groups, not trusting information from unverified sources, and not using third-party applications for financial management.
Actions to Take:
- Report any suspected fraudulent activities to the relevant authorities.
- Educate yourself on investment schemes and online scams.
- Verify sources before sharing or investing in anything.
(Photo courtesy of CNA)