Taiwan:
A second bank has been found to have had unknowingly lent excessive amounts of money to one of its cash card holders, highlighting the need for the island's banks to overhaul their operation control system, and fix loopholes immediately, local media reported yesterday.
The card holder, identified by the Central News Agency only as Chan, managed to withdraw NT$2.56 million from automated teller machines with his cash card last October. The limit on the card was NT$50,000.
Pan Asia Bank, the issuer, brought fraud charges against Chan, who was later sentenced to 10 months imprisonment by the Taipei District Court.
The 32-year-old Chan, according to media reports, received the card in August last year, but he used up his limit before long.
He went to Macau two months later where he gambled away all his money at casinos. Running out of cash, he tried the cash card at ATM machines and was still able to withdraw money on the card. Within a week his credit on the card had accumulated to NT$2.56 million.
The bank only became aware of the situation in November, but failed to get any of the money back from Chan, who was virtually broke.
On Friday, a First Commercial cash card holder was found to have withdrawn NT$34 million, nearly 1,700 times his credit limit, without the bank's knowledge.
The ministry demanded that First Commercial stop issuing new cards, and will decide next week whether to punish the bank pending a report due next week.
http://www.chinapost.com.tw/taiwan/detail.asp?ID=41893&GRP=B
A second bank has been found to have had unknowingly lent excessive amounts of money to one of its cash card holders, highlighting the need for the island's banks to overhaul their operation control system, and fix loopholes immediately, local media reported yesterday.
The card holder, identified by the Central News Agency only as Chan, managed to withdraw NT$2.56 million from automated teller machines with his cash card last October. The limit on the card was NT$50,000.
Pan Asia Bank, the issuer, brought fraud charges against Chan, who was later sentenced to 10 months imprisonment by the Taipei District Court.
The 32-year-old Chan, according to media reports, received the card in August last year, but he used up his limit before long.
He went to Macau two months later where he gambled away all his money at casinos. Running out of cash, he tried the cash card at ATM machines and was still able to withdraw money on the card. Within a week his credit on the card had accumulated to NT$2.56 million.
The bank only became aware of the situation in November, but failed to get any of the money back from Chan, who was virtually broke.
On Friday, a First Commercial cash card holder was found to have withdrawn NT$34 million, nearly 1,700 times his credit limit, without the bank's knowledge.
The ministry demanded that First Commercial stop issuing new cards, and will decide next week whether to punish the bank pending a report due next week.
http://www.chinapost.com.tw/taiwan/detail.asp?ID=41893&GRP=B
