Regulatory Alerts2025-08-11
Added
Cathay United Bank Fined 12 Million TWD for Internal Control Failures Related to Customer Credit Card Fraud by Customer Service Staff
The Financial Supervisory Commission imposed a 12 million New Taiwan dollar fine on Cathay United Bank for failing to maintain adequate internal controls that allowed a customer service representative to fraudulently steal approximately 6.88 million TWD from 18 clients. The regulator identified critical deficiencies in the bank's mechanisms for verifying customer identity during card replacement, adjusting payment amounts, and accessing credit card image systems. These control failures enabled the employee to bypass security checks, alter client contact information, and conceal fraudulent transactions.
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