The Fraud Crime Hazard Prevention Act was promulgated on July 31, 2024, with a focus on strengthening anti-fraud measures in the financial, telecommunications, and internet sectors to address the increasingly diverse and sophisticated methods of modern fraud. Key points are as follows:

1. Anti-financial Fraud Obligations: Financial institutions and virtual asset service providers are required to strengthen their customer identity verification and the monitoring of abnormal transactions to report suspected fraudulent activities.

2. Verification of Telecommunication Users: Telecommunication providers must verify user identities before offering services and may restrict or terminate services if suspicious fraudulent activities are detected to prevent their services being used as tools for fraud.

3. Responsibilities of Online Platforms: Online advertisement platforms are required to review ad content and cooperate with regulatory authorities to establish fraud prevention reporting mechanisms.

The implementation of this Act signifies the government’s determination to combat fraud. Companies failing to comply with anti-fraud regulations will face penalties ranging from NT$200,000 to NT$10 million, depending on the severity of the violation. Companies are advised to proactively strengthen internal anti-fraud mechanisms and ensure compliance with regulations to reduce legal risks and protect consumer rights.

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