TAIWAN-CHINA-BANKING-INVEST
On November 3, E.Sun Bank experienced multiple abnormal transfer incidents, affecting 419 customers and involving more than NT$40 million. Regulatory authorities have requested the bank to submit an investigation report. (Image source: Central News Agency/E.Sun Bank)

Bank SinoPac reported an incident involving abnormal transfers from multiple customer accounts on Nov. 3. A preliminary investigation found that 419 customers were affected in 427 transactions, with more than NT$40 million transferred out. The Financial Supervisory Commission (FSC) has ordered the bank to protect customers' rights and submit a major incident report by a specified deadline.

According to Central News Agency reports, Bank SinoPac received complaints from customers who said their accounts showed records of funds being transferred out even though they had not logged into the new mobile banking app. After cross-checking transaction data, the bank found that the funds had been concentrated in an account at another bank. It initially confirmed 427 abnormal transactions, each involving approximately NT$100,000.

The FSC's Banking Bureau said Bank SinoPac had temporarily frozen the relevant recipient account and returned the affected customers' funds using an advance payment arrangement. The bank has also taken the new mobile banking app offline and is temporarily directing customers to use the old version of the app or ATMs for related services.

The FSC said Bank SinoPac must submit a major incident report by Nov. 12 detailing the cause of the incident, system problems and follow-up improvement measures. It remains unclear whether the incident involved system vulnerabilities, an external attack or another cause. The bank is continuing its investigation, and regulators will assess subsequent action based on the findings.

The Criminal Investigation Bureau also received reports from members of the public after the incident. According to Central News Agency reports, police had accepted 68 related cases as of noon on Nov. 3. The cases remain under investigation.

The incident again highlights cybersecurity risks in financial institutions' digital services. As mobile banking and online transactions become essential channels for everyday financial services, banks must not only make transactions more convenient but also strengthen identity verification, abnormal transaction monitoring and system security mechanisms.

The FSC's follow-up investigation and the system improvements proposed by Bank SinoPac will be closely watched.