Taiwan's Financial Supervisory Commission has imposed a NT$12 million administrative fine on Cathay United Bank after a former customer-service employee exploited weak credit card controls to have replacement cards issued and run up about NT$6.88 million in unauthorised charges on 18 customers' cards between March and October 2024. The penalty, announced on 11 August 2025, cites failures in four specific operational domains: updating credit card customer information, managing card reissuance for lost cards, adjusting credit card payment amounts, and operating the card image retrieval system. The FSC determined that these deficiencies constituted a violation of Article 45-1, Paragraph 1 of the Banking Act.
FSC ORDERS
Alongside the fine, the FSC ordered the bank to review the accountability of staff involved, reassess the effectiveness of its customer-service internal controls and anti-fraud mechanisms and report the results to its board, strengthen employee integrity training, and present the case to the Bankers Association.