Taipei:Bank SinoPac is currently investigating 427 unauthorized transactions totaling more than NT$40 million (US$1.21 million), which have impacted 419 customers. This information was disclosed by the Financial Supervisory Commission (FSC) on Tuesday.
According to Focus Taiwan, Wang Yun-chung, deputy director-general of the FSC's Banking Bureau, reported that the bank had notified the regulator shortly before noon about customers experiencing unauthorized transfers from their accounts without having logged into the bank's new mobile banking app.
The bank's initial review revealed that all funds were transferred to a single account at another bank, with each transaction amounting to approximately NT$100,000 (US$3,050). The recipient account has since been temporarily frozen. Wang mentioned that the FSC has instructed Bank SinoPac to prioritize customer protection, and the bank has proactively informed affected customers and is using its own funds for reimbursement.
The bank has taken its new mobile banking app offline as a precautionary measure and is directing customers to use the older app version or ATMs for transactions. Bank SinoPac is expected to submit a preliminary report on the incident to the FSC by the end of Tuesday, with a detailed report due by November 12.
Wang indicated that the possibility of penalties for the bank is contingent upon clarifying the incident's cause and severity. In a statement, Bank SinoPac attributed the unauthorized transfers to a software glitch in its new online banking system and confirmed that it had reimbursed affected customers, covering both funds and transaction fees.
The incident came to light through customer posts on Threads, reporting unauthorized transfers of NT$100,000 from their Bank SinoPac accounts to a designated account at Taipei Fubon Bank. The Criminal Investigation Bureau has received 68 reports by noon, many involving male customers with connections to Yunlin County.
Source Focus Taiwan
