Chinese-Backed Company Fined for Credit Card System Breach; Cathay United Bank Terminates Contract
24 March 2025 路 Uncategorized 路
In response to the involvement of a subsidiary linked to Chinese capital in the core system of Cathay United Bank's credit cards, Economic Minister Kuo Chih-hui confirmed today that AnyTech (瑾嶅拰绉戞妧) was fined NT$2.17 million under Taiwan鈥檚 Cross-Strait Relations Act.
Cathay United Bank subsequently issued a statement indicating they had terminated their contract with AnyTech on February 24th following careful evaluation. The bank currently manages over six million credit cards in Taiwan and recently faced public concern after it was revealed that its core system was handled by an overseas subsidiary of a China-backed company, raising fears about potential data breaches affecting millions of users.
During legislative questioning today, Kuo Chih-hui stated that AnyTech鈥檚 connection to Chinese capital led to the fine under the Cross-Strait Relations Act. Financial Supervisory Commission Chairman Peng Jin-long noted that financial institutions have been asked to strengthen cybersecurity oversight and conduct more rigorous reviews of high-risk suppliers. Future plans include inter-ministerial cooperation for a comprehensive review of supply chains in the financial sector, aimed at preventing Chinese infiltration through proxy or acquisition methods and ensuring Taiwan鈥檚 financial security.
Cathay United Bank announced that after signing a contract with Singapore-based AnyTech regarding a credit card core system modernization project鈥攁nd considering public concerns鈥攖hey terminated their contractual relationship early on February 24th as stipulated in the agreement. The bank confirmed they have not utilized any systems provided by AnyTech to date.
The bank emphasized it had commissioned Zhonghua Information Security for a thorough examination of the source code delivered by AnyTech, which found no suspicious backdoors or malicious network connections and therefore determined there is no risk of information leakage.
(Lead image credit: Cathay Financial Holdings)
Cathay United Bank subsequently issued a statement indicating they had terminated their contract with AnyTech on February 24th following careful evaluation. The bank currently manages over six million credit cards in Taiwan and recently faced public concern after it was revealed that its core system was handled by an overseas subsidiary of a China-backed company, raising fears about potential data breaches affecting millions of users.
During legislative questioning today, Kuo Chih-hui stated that AnyTech鈥檚 connection to Chinese capital led to the fine under the Cross-Strait Relations Act. Financial Supervisory Commission Chairman Peng Jin-long noted that financial institutions have been asked to strengthen cybersecurity oversight and conduct more rigorous reviews of high-risk suppliers. Future plans include inter-ministerial cooperation for a comprehensive review of supply chains in the financial sector, aimed at preventing Chinese infiltration through proxy or acquisition methods and ensuring Taiwan鈥檚 financial security.
Cathay United Bank announced that after signing a contract with Singapore-based AnyTech regarding a credit card core system modernization project鈥攁nd considering public concerns鈥攖hey terminated their contractual relationship early on February 24th as stipulated in the agreement. The bank confirmed they have not utilized any systems provided by AnyTech to date.
The bank emphasized it had commissioned Zhonghua Information Security for a thorough examination of the source code delivered by AnyTech, which found no suspicious backdoors or malicious network connections and therefore determined there is no risk of information leakage.
(Lead image credit: Cathay Financial Holdings)