Taiwan legislature strengthens fraud law with harsher penalties and incentives for restitution
Taiwan has amended its fraud laws to impose stiffer penalties, offer reduced sentences for restitution, and authorise stricter oversight of online platforms and financial institutions.
- Taiwan’s legislature passed amendments imposing harsher punishments for high-value fraud and repeat offenders.
- Offenders who surrender and compensate victims within six months may receive reduced sentences.
- Courts may now consider luxury spending prior to restitution as a factor in sentencing.
On 30 December, 2024, the Legislative Yuan of Taiwan passed a set of sweeping amendments to the Fraud Crime Hazard Prevention Act (詐欺犯罪危害防制條例), marking a significant escalation in the country’s battle against financial fraud. The revisions increase criminal penalties for high-value fraud, target criminal syndicates, and introduce mechanisms to expedite victim compensation.
The revised legislation reduces the threshold for defining high-value fraud from NT$5 million to NT$1 million (approximately US$31,819).
Offences involving this amount or more now carry a prison sentence of three to ten years, alongside fines of up to NT$30 million.
For frauds exceeding NT$10 million, prison terms increase to five to twelve years, with fines capped at NT$300 million. Offences involving over NT$100 million draw a minimum of seven years’ imprisonment and fines reaching NT$500 million.
Recognising the exploitation of vulnerable populations, the law mandates enhanced penalties—by 50 percent—for those who instigate, assist, or conspire with fraud syndicates, particularly when involving minors or the elderly.
To counter fraud at the financial systems level, the amended law empowers judicial and police authorities to notify financial institutions and virtual asset service providers to monitor and flag suspicious accounts. This includes bank accounts, e-payment wallets, credit cards, and virtual asset accounts. Institutions may be instructed to temporarily suspend transactions associated with accounts under investigation.
In addition, courts can now take into account excessive or luxurious spending patterns—such as purchasing high-end real estate or vehicles—if the fraudster has not yet fulfilled their restitution obligations. This “luxury ban” clause aims to discourage lavish spending before victims are made whole.
To enhance cooperation among financial entities, the amendments require the establishment of cross-sector alert mechanisms and information-sharing platforms. Financial and virtual asset service providers are now legally obliged to respond to alerts, share data on suspicious accounts, and work collaboratively to detect and halt fraudulent transfers.
A notable addition is the provision allowing reduced or waived sentences for offenders who voluntarily surrender and fully compensate their victims within six months. This applies both to those who turn themselves in post-crime and those who confess during investigations or court proceedings. Compensation must be complete and verified through reconciliation or settlement with victims.
Moreover, further leniency is granted if such offenders help prosecutors track down ringleaders or enable the seizure of all fraudulently obtained assets by the organisation. These clauses aim to incentivise lower-level perpetrators to assist authorities in dismantling syndicates.
The legislature also passed a supplementary resolution urging the Ministry of Digital Affairs to tighten regulation over online advertising platforms. The ministry is encouraged to strengthen disclosure requirements, align with international standards, and set up localised customer service functions to reduce fraud facilitated through digital ads.
In tandem, the amendments enable judicial police agencies to pre-emptively provide victim identity data to financial institutions. This facilitates timely intervention before victims unknowingly complete transactions with fraudsters. The aim is to prevent losses before they occur.
Despite existing mechanisms, the law’s sponsors noted that only around 13.9 percent of scammed funds were recovered in Taiwan as of 2025. The legislative overhaul thus seeks to significantly raise this recovery rate through both punitive and cooperative approaches.
The revised act also clarifies the role of Internet service providers, mandating their cooperation in disabling fraudulent websites when instructed by competent authorities. This provision is intended to accelerate the takedown of scam operations hosted online.
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