Taichung, Taiwan — December 8, 2025
A Taichung City Council session today highlighted a controversial case involving the freezing of multiple bank accounts, raising concerns over the city’s current procedures for identifying and handling suspected scam-related accounts. Councilor Lin Chi-feng revealed that a legitimate biotechnology company nearly faced operational collapse after being mistakenly listed as a warning account due to an excessive freeze order triggered by a fraud report.
53 Small Deposits Lead to Major Freeze
According to Lin, a citizen reported to police that they had been scammed after presenting 53 deposit slips, each showing a transfer of NT$100, made to 53 different bank accounts. Acting quickly, the police froze all 53 accounts involved.
However, among these accounts was one belonging to an actively operating biotech company. Once its account was flagged, the business immediately encountered severe financial disruptions—customer payments could not be received, employee salaries were blocked, and foreign exchange transactions and checks were at risk of bouncing. Lin emphasized that such missteps could devastate a company’s credit reputation overnight.
He insisted that while he strongly supports anti-fraud efforts, police must coordinate proactively with financial institutions and conduct multi-level verification before implementing freezes. He questioned, “What went wrong with Taichung’s criteria for labeling warning accounts?”
Police Explanation: Scam Started on TikTok
The Fourth Precinct explained that the complainant was lured by a stock investment advertisement on TikTok, which led them into a fraudulent LINE investment group. The scammer demanded an “entry fee” and provided 53 unrelated bank accounts for payment. After the victim transferred NT$5,300 across those accounts, the scam group disappeared.
Police reported the accounts to banks as required. After further investigation, five accounts were found unrelated to the scam and were restored to normal use—including the biotech company’s account.
Taichung’s Escalating Fraud Situation
Councilor Lin warned that Taichung continues to face a severe fraud problem:
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Jan–Nov 2025: 23,244 cases
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Total losses: NT$11.36 billion
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Average daily loss: NT$3.4 million
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Dec 1–6 alone: 389 new cases, NT$152 million in losses
Police have been actively cracking down, having:
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Dismantled 507 fraud groups
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Arrested 4,285 suspects
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Seized NT$1.02 billion in illegal gains
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Prevented NT$1.46 billion in potential losses
Lin acknowledged the police force’s efforts, saying officers are “fighting scams to the point of exhaustion,” but stressed that precision is key.
Call for Reform: “Accuracy, Speed, and Reasonableness”
Lin said the biotech company immediately went to the precinct to clarify the situation, but was told it might take up to six months to lift the account freeze due to the volume of fraud cases. The company allegedly scrambled to reassure suppliers and clients before finally seeking help from Lin’s office.
He urged Mayor Lu Shiow-yen and the Police Bureau to review and improve their procedures, strengthen coordination with banks, and ensure that freezes are justified and proportionate.
Lin concluded, “Anti-fraud actions must be accurate, swift, and reasonable. No legitimate business should be pushed to the brink of collapse over a series of small NT$100 transfers.”