Postal service Chunghwa Post is reducing the daily withdrawal limit.
Catchy Title: "Chunghwa Post Slashes Daily Withdrawal Limits to NT$100,000 to Combat Fraud"
Yesterday, Chunghwa Post revealed their intentions to slash the daily withdrawal limit for bank accounts to a meager NT$100,000, as part of an aggressive crusade against financial fraud. This bold move is bound to send ripples through the country’s banking sector.
The popularity of debit cards issued by the postal service has made them a sought-after tool in the clandestine world of money laundering and fraud. Online scammers have been using social media platforms shamelessly to peddle ATM cards to unsuspecting individuals, only to misuse these cards in illicit activities. Low or middle-income families, migrants, rural residents, and those relying on government aid are frequently caught in the crosshairs of these cyber-criminals.
Chunghwa Post declared that customers' daily limit of NT$150,000 at ATMs and digital transactions would plummet to NT$100,000, taking effect from May 28. This sweeping change affects a staggering 18 million customers, according to the company.
This drastic step is a response to the astounding surge in reported fraud cases, which rose by a staggering 77% from 6,008 cases in 2023 to a whopping 10,619 cases in the previous year.
Interestingly, NT$150,000 or NT$100,000 limits are fairly commonplace among banks in Taiwan. Savings and Remittances Department senior executive Chen Kuang-lien explains that the majority of banks currently operate on a split system, with approximately half adhering to limits similar to NT$100,000. The primary objective of this policy transformation is to hinder scammers from making a quick getaway with large sums of cash.
Chen assures that most customers seldom require NT$100,000 in a single day, thus the change will impact fewer individuals than one might initially assume. Those needing to withdraw larger sums can still do so in person, adding a personal touch to the transaction.
On a related note, Chunghwa Bank has also announced that designated transfer accounts would no longer be instantaneously available from July 19. Instead, the funds would be transferred on the second day following the application, with the intention of providing clients with more time to weigh their decisions.
[1] Source: Taiwan News
It appears that Chunghwa Post's decision to decrease the daily withdrawal limit for customers to NT$100,000 from NT$150,000, starting from May 28, is not exclusive to their services, as this level seems common among other banks in Taiwan's industry. In an attempt to combat fraud, particularly in the banking-and-insurance sector, Chunghwa Bank has also announced a change in their transfer account policies, making funds available only on the second day following the application.
