TAIPEI (Taiwan News) — Taichung police on Friday reported the country’s first known credit card fraud network using illegal payment software, which netted more than NT$20 million (US$666,138) in three weeks.

Authorities from Taichung and Taipei arrested 20 suspects in three coordinated operations. Police said the group operated across northern, central, and southern Taiwan. It had a highly organized structure, assigning roles to leaders, software engineers, suppliers, couriers, and resale agents, according to CNA and UDN.

The suspects obtained foreign bank credit card data and illegal software, linked the information to mobile phones, and visited stores to make contactless payments. The software tricked card readers into approving the transactions.

This enabled a spree of high-value purchases that included liquor, gold, smartphones, cosmetics, skincare products, and luxury leather goods. The merchandise was resold through personal online marketplaces and secondary sales channels.

Abnormal spending patterns were flagged by the banks’ risk control departments, triggering the investigation.

Authorities said the suspects were transient, had no vehicles, and took strict measures to avoid detection, posing challenges for law enforcement. The alleged ringleader has been identified as a man surnamed Yang (楊).

The case has been handed over to the Taichung District Prosecutors’ Office. The suspects face charges of fraud under the Criminal Code and violations of the Organized Crime Prevention Act.