Taiwan Police and 12 Banks Pilot AI Face-Masking Alerts at ATMs to Deter Fraud

TAIPEI, June 18 (CNA) — To prevent ATMs from being exploited as exit points for fraudulent funds, Taiwan's Criminal Investigation Bureau (CIB) has joined forces with 12 financial institutions to launch a pilot program for 'ATM Facial Masking Alert and Risk Detection Mechanisms.' The system identifies features typically used by money mules, such as helmets and face masks. Currently, 1,154 ATMs are included in the pilot, and the CIB expects more banks to join.

The CIB held a press conference today titled 'ATMs No Longer the Breach: Successful Pilot of Facial Masking Alerts with Financial Institutions,' presided over by CIB Bureau Chief Qiu Shaozhou. Representatives from banks including SinoPac, CTBC, and Cathay United attended to share their anti-fraud results.

According to the CIB's '165 Anti-Fraud Dashboard,' approximately 12,000 fraud cases were reported nationwide in May, with total financial losses amounting to 5.46 billion TWD. This represents a decrease compared to the same period last year (16,000 cases and 8.72 billion TWD in losses).

Analysis reveals that fraud syndicates continue to use 'mules' and straw-man accounts to transfer stolen funds. Consequently, ATM locations have been identified as a critical defensive line for blocking these financial flows.

Referring to a pilot by Chunghwa Post and the Tainan City Government, the CIB noted that since last May, ATM masking recognition (e.g., detecting masks) and real-time voice reminders were introduced at four post office locations. The current expanded pilot includes CTBC, Mega Bank, Taiwan Cooperative Bank, Bank SinoPac, Chunghwa Post, and newcomers such as Chang Hwa Bank, First Bank, Land Bank of Taiwan, Taishin Bank, Cathay United, Bank of Taiwan, and Taiwan Business Bank.

Statistics show that among the 1,154 ATMs, 1,146 can provide quantifiable data. Between January and April this year, fraudulent withdrawal attempts dropped by 1,851 cases compared to the same period last year, preventing 41.48 million TWD in losses. The CIB stated that this mechanism increases the operating costs for money mules trying to hide their identities and significantly reduces the burden on backend investigations.