On April 17, 2025, President Lai Ching-te attended the '2025 Anti-Fraud Forum' in Taipei, where he unveiled the government's comprehensive strategy to combat the rising tide of fraud in Taiwan. This initiative is particularly crucial as the nation grapples with a staggering annual loss of 130 billion yuan due to fraudulent activities, prompting public outrage and calls for action.
During the forum, President Lai emphasized that the government is committed to employing a four-pronged approach to tackle fraud, focusing on organizational, legal, policy, and budgetary measures. He stated, "I do not believe that evil can triumph over good; we are the government and must have the determination to combat corruption, black money, gambling, and fraud—one county and city at a time.”
The president noted that fraud schemes are constantly evolving, posing a significant threat to Taiwanese society. In response, the Executive Yuan has established an anti-fraud office, which is supervised by Executive Yuan Political Member Lin Ming-tsun and directed by Interior Ministry Deputy Minister Ma Shih-yuan. This office collaborates with various ministries, including the Interior Ministry, Police Department, Ministry of Justice, Financial Supervisory Commission, Ministry of Transportation, and Ministry of Digital Affairs.
Following his inauguration on May 20, 2024, Lai actively sought legislative support to pass four new anti-fraud laws. These include the 'Fraud Crime Hazard Prevention Act' and amendments to the 'Communication Protection and Supervision Act', the 'Money Laundering Control Act', and the 'Criminal Law'. The primary goals of these laws are to increase penalties for fraud, enable source management and prevention, and provide substantial legal assistance to victims.
The Anti-Fraud Framework has also evolved; originally launched during former President Tsai Ing-wen's administration as 'Framework 1.0', it was upgraded to 'Framework 2.0' in January 2025. This new version adds a focus on prevention, overseen by the Ministry of Digital Affairs. Lai pointed out that the implementation includes requiring real-name registration for advertisers on online platforms, utilizing artificial intelligence to detect fraudulent advertisements, and establishing a virtual currency verification system to thwart fraud.
In terms of budget, the government has allocated an additional 7.3 billion yuan this year to bolster its anti-fraud efforts. Lai highlighted the importance of viewing the numbers behind fraud as representations of individual victims and their families, emphasizing that the government must approach this issue with compassion. He urged the public to be vigilant and adopt a 'stop, listen, and look' approach when confronted with suspicious investment opportunities, particularly online.
Approximately 70% of fraud cases in Taiwan involve investment and financial scams, which have become increasingly sophisticated. Lai cautioned that while offers from friends and family may seem trustworthy, online invitations from unknown sources often lead to deception. He advised potential investors to scrutinize such opportunities closely and to be wary of common fraud patterns.
In a related incident, a woman surnamed Chen from Lukang Township nearly fell victim to a fraudulent investment scheme after responding to a job post on the social media platform Threads. Initially lured by small profits, she was subsequently persuaded to remit 1.05 million yuan as a security deposit. Fortunately, a vigilant bank clerk noticed the unusual transaction and alerted the police.
Officer Yu Kun-han from the Lukang Police Station quickly responded to the scene. Although Chen was initially reluctant to disclose the details of her situation, Officer Yu’s patient approach encouraged her to reveal the full story. Recognizing the situation as a typical investment fraud, the police provided Chen with the 165 anti-fraud hotline and relevant resources, ultimately helping her cancel the remittance and retain her funds totaling 2,817,573 yuan.
The police have reiterated the importance of using legitimate channels for investment and cautioned the public against trusting unsolicited investment invitations online. Chen expressed her gratitude for the timely assistance from both the bank and the police, praising their professionalism and empathy.
Public sentiment towards fraud has reached a boiling point, with a recent poll revealing that 78.5% of the population is dissatisfied with the rampant activities of fraud groups. As Taiwan positions itself as a global leader in artificial intelligence, there is a growing consensus that technology must play a pivotal role in preventing fraud.
Effective fraud prevention strategies include raising public awareness and enhancing vigilance among financial institutions and law enforcement agencies. For instance, one bank reported successfully intercepting nearly 300 million yuan in fraudulent transactions over the past year, thanks to employee training that focused on identifying suspicious behavior.
However, the current methods rely heavily on manpower, which can lead to inefficiencies. The New Taipei City Police Department has implemented measures requiring officers to monitor ATMs closely, asking for identification from individuals withdrawing money. While this approach has its merits, it has also drawn criticism for straining police resources.
To address these challenges, the Financial Supervisory Commission has proposed incorporating facial recognition technology at ATMs to enhance tracking of potential perpetrators. Some banks have already begun trialing this technology, while similar measures have been implemented in Osaka, Japan, where users are prohibited from using their phones at ATMs.
In Tainan, innovative solutions have been adopted, including AI systems that detect whether individuals are wearing masks or helmets at ATMs. Such measures have garnered public support, as they could potentially deter fraudsters and reduce the burden on law enforcement. Financial institutions in Taiwan are eager to collaborate with the Tainan City Government to explore the use of AI in fraud prevention.
As Taiwan continues to grapple with the pervasive issue of fraud, the government's multi-faceted approach, combined with technological advancements, aims to protect citizens and restore public confidence in financial security.
