TAIPEI (Taiwan News) — Taiwan has piloted AI-powered alerts at more than 500 ATMs across five banks to curb fraudulent cash withdrawals by scam mules.
Wang Yun-chung (王允中), deputy director-general of the Financial Supervisory Commission’s Banking Bureau, said ATMs equipped with the feature sound an alert when users attempt to withdraw cash while their faces are covered. He stressed the pilot program does not block transactions if users choose not to remove their face coverings, per CNA.
The National Police Agency said scam mules often wear masks or helmets when withdrawing cash from ATMs, complicating evidence collection and suspect tracking. It hopes the initiative will strengthen investigative capacity.
Banks participating in the pilot program include Mega International Commercial Bank, CTBC Bank, Taiwan Cooperative Bank, Chang Hwa Commercial Bank, and First Commercial Bank. The Tainan City Government has also partnered with Chunghwa Post Co. to roll out the alert feature at some post office ATMs in the city.
Wang said requiring all banks to ban face coverings during ATM withdrawals would raise legal issues under the Banking Act and require upgrading about 33,000 machines nationwide. The government will first introduce the alert feature in areas where scam mules are most active, he said.
Wang added that some banks using the feature have seen fewer fraudulent withdrawals. The commission plans to discuss the program’s effectiveness with the police agency to determine whether to expand it.
From January to November 2025, fraud losses in Taiwan reached NT$82.66 billion (US$2.6 billion), according to the police agency. Some scammers have used AI deepfake technology to create fake voices and videos to carry out schemes.
The most common scams involve fake investment schemes or impersonating police or prosecutors. In 57% of cases, scam mules use victims’ bank cards to withdraw cash, and women are twice as likely as men to fall victim.
