ATM face-obscuring warning function drastically cuts fraud in Taiwan

Taiwan's police are intensifying their fight against fraud, with the Criminal Investigation Bureau announcing significant progress in May. The latest "165 Anti-Fraud Dashboard" statistics show a 20% decrease in reported fraud cases and a substantial 37% reduction in financial losses compared to the same period last year.

A key factor contributing to this success is the implementation of a "face-obscuring warning function" on ATMs, a collaboration between the police and financial institutions. This technology has proven highly effective, leading to a drop of over 50% in both the number of fraudulent withdrawals and the amounts involved. This marks a shift from traditional post-incident investigations to real-time deterrence.

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The number of fraudulent withdrawal cases and amounts have decreased by more than 50% since this technology was implemented, effectively deterring fraud couriers.

Previously, fraudsters often wore helmets, masks, or sunglasses to conceal their identities, complicating police investigations. The new ATM function addresses this by integrating with financial institutions' risk data and intelligence from the 165 anti-fraud hotline. Since December, the function has been deployed in over 1,000 high-risk ATM locations identified through data analysis.

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The number of fraudulent withdrawal cases decreased by 1,851, and the amount of fraudulent withdrawals decreased by more than 41.48 million yuan compared to the same period last year.

Statistics from January to April show that ATMs equipped with this feature experienced 1,851 fewer fraudulent withdrawal cases and a reduction of over NT$41.48 million (approximately $1.3 million USD) in fraudulent funds compared to the previous year. This mechanism effectively increases the operational cost for fraudsters attempting to hide their identities and significantly eases the burden on subsequent investigations.

Financial institutions are implementing the function in various ways. For example, CTBC Bank's ATMs initiate AI-powered facial recognition when a card is inserted, displaying a warning if the face is obscured and requiring the user to remove any coverings. E.SUN Bank has installed external devices that require users to remove face coverings before entering the ATM area. Cathay United Bank uses a "scenario-based question" mechanism before transactions, prompting users to review their actions and potentially halting transactions if fraud indicators are detected.

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We thank financial institutions for proactively investing in technological anti-fraud measures and call on all financial institutions to continue strengthening ATM transaction warning and risk interception mechanisms, making ATMs an important defense line for blocking fraudulent funds and jointly preventing fraud groups from withdrawing stolen money.