Bank SinoPac has taken its new mobile banking app offline as Taiwan’s regulator reports 419 customers affected by 427 unauthorized transfers exceeding NT$40 million in total.
The Financial Supervisory Commission (FSC) said the transfers exceeded NT$40 million ($1.21 million), Focus Taiwan reported Tuesday. Deputy Director-General Wang Yun-chung of the FSC’s Banking Bureau said customers reported transfers despite not logging into the new app.
The bank’s initial review traced the transfers to one account at another bank. Wang said each transaction was about NT$100,000 ($3,050), and the receiving account had been frozen temporarily.
Bank SinoPac said a software fault in its new online banking system caused the unauthorized transfers. Wang said the cause was still under investigation. The bank directed customers to use its older app or ATMs, and said it had reimbursed affected customers for the transferred funds and transaction fees. Wang said the bank had notified customers and was using its own funds for repayment.
Wang said the bank was expected to submit an initial report to the FSC by the end of Tuesday and a detailed report by Nov. 12. The FSC will decide on further action after the bank clarifies the cause and severity.
