Taiwan regulator fines COSBANK $370,000 over credit card processing flaws

Taiwan's Financial Supervisory Commission (FSC) has fined First Bank of Cooperatives (COSBANK), a subsidiary of First Financial Holding Co. (FFHC), NT$12 million (approximately $370,000 USD) due to significant shortcomings in its credit card processing operations.

In addition to the substantial monetary penalty, the FSC has mandated that COSBANK cease accepting applications for new credit cards from customers for a period of one month. This regulatory action highlights serious deficiencies identified by the commission in the bank's handling of credit card processes.

Responding to the penalty, COSBANK issued a statement acknowledging the fine. The bank attributed the issues to "insufficient automation in the old system" and asserted that "comprehensive improvements have been made across the board." The bank emphasized that these problems were identified internally and that corrective measures have been implemented to prevent recurrence.

The FSC's decision underscores the importance of robust and compliant operational procedures, particularly in sensitive areas like credit card processing, where customer data and financial transactions are involved. COSBANK's suspension from accepting new applications serves as a direct consequence aimed at ensuring the bank rectifies its internal controls before resuming full operations in this sector.

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This case is due to insufficient automation in the old system, and comprehensive improvements have been made across the board.