Scammed at Your Doorstep! Taiwan's New Scam Tactics with "Home-based Coin Dealers" Make Prevention More Challenging

Cryptocurrency scams have become a focal point for law enforcement and regulatory authorities, with scam groups becoming increasingly sophisticated, making "doorstep coin dealers" a new challenge for financial security in 2024. As criminal tactics evolve, the Taiwan Financial Supervisory Commission and the Criminal Investigation Bureau have begun collaborating to protect the public from this emerging type of fraud.

Regulating Individual Cryptocurrency Traders: Compliance Declaration Required for More Than Three Transactions

In the battle against fraud, the Financial Supervisory Commission has taken unprecedented measures by including individual cryptocurrency traders under regulation. According to the latest regulations, any individual trader handling more than three transactions of digital virtual currencies must make compliance declarations, report anti-money laundering activities, and declare taxes. This policy expands the scope of supervision beyond corporate entities to include individual traders.

Rise in Proportion of Cryptocurrency Fraud Cases: Over 10% of Fraud Cases

Financial institutions cite statistics from the Criminal Investigation Bureau, indicating that crimes related to "digital currencies" now account for over 10% of all fraud cases.

New Front in Taiwanese Fraud: "Home-based Cryptocurrency Traders"

By 2023, with the diversification of fund transfer methods, criminal organizations have shifted towards providing "home-based services," particularly the "home-based cryptocurrency trader" model. Through specially developed apps, victims' cash is converted into virtual currencies for illegal transactions.

Home-based Services Scam

The Criminal Investigation Bureau revealed that "home-based services" mainly include "cash collection at home" and "home-based cryptocurrency traders." Among these, "home-based cryptocurrency traders" have custom-made apps for fraud gangs to directly conduct virtual currency transactions on victims' phones. Initially, fraud groups induce victims to invest small profits, and once the investment amount increases, they withdraw all funds at once.

Taiwan's Fraud Prevention Doubled Last Year, Yet Still the Tip of the Iceberg

According to the latest statistics before the Lunar New Year, in 2023, through cooperation between the police and banks, the amount of prevented fraud reached 8.989 billion NTD, which is double the amount prevented in the entire year of 2022. While this achievement is significant, the evolving tactics of fraud indicate that challenges persist. Fraud gangs using "home-based services" are more covert and challenging to trace.

Challenges in Crackdown: Cutting off Crypto Money Flow

One of the biggest challenges in cracking down on fraud crimes related to virtual currencies is the existence of over-the-counter (OTC) trading, which provides fraud groups with concealed money flow breakpoints. The most common method involves converting funds into Bitcoin or other virtual currencies through cash transactions with traders and then transferring them to members of fraud groups.

With the continuous advancement of financial technology, the battlefield against fraud is also evolving. In 2024, "home-based cryptocurrency traders" have become a new focus, highlighting the challenges of financial security in the digital age. Government agencies, financial institutions, and the public must remain vigilant and cooperate to protect their own and others' financial security.