Taichung, Taiwan (8/15/2025) – Authorities in Taichung have dismantled what is being described as Taiwan’s first-ever “smart credit card” fraud syndicate, arresting more than 20 suspects linked to a sophisticated payment scam that netted over NT$20 million in stolen goods within weeks.
According to the Taichung City Police Department’s Technology Crime Investigation Team, the main suspect, identified only by his surname Yang, 30, allegedly collaborated with foreign engineers to develop a counterfeit mobile payment application resembling legitimate platforms. This app was then linked to credit card data from U.S. and Japanese banks of unknown origin.
Yang reportedly instructed accomplices—dubbed “credit card thieves”—to target high-value items from department stores, jewelry shops, liquor outlets, and other retailers nationwide. In just three weeks, the group allegedly purchased luxury products, premium liquor, skincare items, and other goods worth tens of millions of New Taiwan dollars.
Police investigations revealed that the fraudsters even rewarded themselves with personal choices such as branded underwear, baby products, and electronics. The largest single-day haul reached NT$4 million before the acquiring bank’s risk control team detected suspicious activity and alerted authorities.
Investigators said the fraudulent payment program was so well-designed that it bypassed point-of-sale verification, tricking card readers into approving transactions as legitimate. The stolen goods were later resold through online auction platforms and second-tier distributors.
The syndicate reportedly operated with a strict chain of command, including leaders, software engineers, material suppliers, credit card handlers, drivers, and distribution networks for unloading stolen merchandise—posing a serious threat to Taiwan’s financial security.
Following coordinated raids in March, May, and July this year, police arrested Yang along with multiple fraud operators and stolen goods dealers. A total of 20 individuals have been referred to the Taichung District Prosecutors Office on charges of fraud and organized crime.
