Taiwan Indicts Four in NT$495 Million Cross-Border Scam Targeting Singapore and Malaysia

In a major breakthrough in Taiwan’s efforts to combat transnational cybercrime, prosecutors in Kaohsiung have indicted four members of a southern Taiwan-based fraud ring for allegedly defrauding citizens in Singapore and Malaysia of nearly NT$495 million (approximately US$16.6 million). This case represents one of the most significant cross-border scams uncovered by Taiwanese authorities in recent years, and highlights the evolving methods cybercriminals are using to exploit technology and breach financial systems.

According to the Ciaotou District Prosecutors Office, the suspects—led by a man surnamed Tsai (蔡)—face aggravated fraud and money laundering charges. The office is seeking a minimum prison sentence of eight years for each of the four individuals. The alleged mastermind, a man surnamed Lee (李), remains at large and is the subject of an ongoing international manhunt.

🚨 Modus Operandi: Sophisticated Malware and Deceptive Apps

The fraud ring reportedly began its operation in late 2022, when the fugitive ringleader Lee acquired a Trojan horse malware program. By March 2023, Lee had recruited the four indicted suspects and set up a network pretending to be a legitimate software service vendor.

Using this front, the group launched targeted online advertisements in Singapore and Malaysia, which lured unsuspecting users into downloading a fraudulent investment application dubbed “World Famous Sheep”—a name ironically invoking trust and reliability.

However, this app contained embedded spyware that covertly accessed a user’s device, allowing the ring to:

• Monitor and record personal data
• Track user activity
• Steal online banking credentials
• Remotely control devices
• Transfer funds without user authorization

This tactic mirrors a trend in global cybercrime where scammers exploit mobile vulnerabilities through seemingly harmless apps to bypass two-factor authentication and drain financial accounts.

🛡️ Regional and International Cooperation

The case was cracked following coordinated efforts between Taiwan’s prosecutors and the Singaporean police, showcasing an increasing willingness for cross-border collaboration against digital fraud.

Investigators uncovered how the ring bypassed detection by converting stolen funds through multiple layers of cryptocurrency wallets and shell bank accounts, before eventually rerouting them into Taiwan-based bank accounts controlled by the perpetrators.

It’s believed that the group operated from Taiwan but used servers and IP masking techniques to appear as though they were based abroad, complicating detection efforts by local authorities.

🌏 Why It Matters: Taiwan’s Role in Fighting Cybercrime

This case is notable not just for the amount stolen, but for what it signals about Taiwan’s cybersecurity and legal enforcement capabilities:

• Taiwan is increasingly being used as a launchpad for regional cybercriminal activity due to its high internet penetration and relatively advanced fintech infrastructure.
• This case could accelerate Taiwan’s efforts to tighten regulatory oversight on cryptocurrency exchanges and digital payments.
• It further underscores the need for user education, as social engineering remains a common vector for malware infection.

Moreover, Taiwan’s willingness to collaborate with Southeast Asian authorities sends a strong signal about its intention to be a responsible partner in regional cyber defense—despite its diplomatic isolation.

📌 FAQs