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Cabinet proposes stricter anti-fraud measures
The cabinet has approved an anti-fraud package mandating that multi-national digital platforms offering advertising services must assist in identifying, reporting, and removing fraudulent content or risk hefty fines and even service suspensions.
The proposals will require large digital services to appoint a "legal representative" in Taiwan to ensure compliance with local regulations. Those platforms will be obliged to remove or restrict access to fraudulent advertisements or messages, suspend services for users suspected of fraud, and report all relevant illegal activities to the police. They will also need to verify and disclose the identity of those who wish to run advertisements using their services, and label advertisements with deep-fake or AI-generated content.
The government says failure to comply with the regulations will result in a maximum fine of NT$25 million or the suspension of services.
In addition, the cabinet has approved a package that seeks to impose heavier punishments for those convicted of fraud. Under the proposed legislation and amendments, individuals convicted of fraudulent acts where gains exceed NT$10 million will face a prison sentence of between three to 10 years.
Fraud committed by a group of three or more individuals under the pretence of a government agency or official, or through broadcasting channels or the internet, will receive a prison sentence of one to seven years of imprisonment, with an additional fine which has been raised from the current NT$1 million.
The proposal includes provisions for reducing or exempting punishment for fraud perpetrators who surrender themselves and work with law enforcement in apprehending the main culprit and seizing all illegal gains. It further also seeks to codify the use of certain crime investigation tools by law enforcement, such as the Global Positioning System for tracking suspects and thermal imaging cameras, as long as there is prior authorization from a court. The proposals will now be sent to the Legislative Yuan for review and approval.
