Cathay United Bank’s ATM and online banking crashed on the 8th, and credit card swiping was completely unusable. Cathay United Bank apologized today and proposed a compensation plan to provide the public with 6 inter-bank fee-free discounts from October 12 to 16; For cardholders affected by Costco checkout, the Doric Rebate has been increased from 1% to 3%.
Cathay United Bank issued a press release this evening explaining the compensation plan, emphasizing that it will conduct an in-depth review and propose improvement plans.
Cathay United Bank pointed out that from the 12th to the 16th (5 days in total), people who use Cathay United Bank ATMs for domestic inter-bank Taiwan dollar transfers and inter-bank Taiwan dollar withdrawals (whether they are Cathay United Bank customers or not), provide Discounts on inter-bank transfer and inter-bank withdrawal fees are waived for 6 times, and a post-return and account mechanism is adopted.
Cathay United World Bank pointed out that for Cathay United World China Costco co-branded cardholders who checked out at Costco stores from 10:00 am to 3:00 pm on the 8th, the transaction amount (including credit card transactions and cash transactions) during the above-mentioned period, Dolly Gold reward increased from 1% to 3%. In addition, merchants using Cathay United Bank’s acquiring service on the 8th will also offer the bank’s card acquiring fee discount on the 15th. Relevant detailed measures will also be announced on the official website of Cathay United Bank.
Lin Zhiji, deputy director of the Banking Bureau of the Financial Supervisory Commission, said at a regular press conference today that the owner of the Neihu Information Building of Cathay United Bank carried out the replacement project of the old high-voltage transformer on the morning of the 8th. During the replacement process, the power supply was not interrupted. However, during the process, the generator was overheated and the load was reduced to supply power, which affected the air conditioner and caused some servers to automatically shut down due to overheating, which in turn affected Cathay United Bank ATM, online banking and credit card acquiring services. operate. As for why Cathay United World Bank did not activate the backup system, Lin Zhiji pointed out that because the transformer replacement project manufacturer immediately assessed that normal power supply might be restored at 12 noon on the same day, Cathay United World Bank believed that the construction time of the project was shorter than starting the off-site backup system. Due to the time required, we decided to complete the construction of this project with all our strength, and temporarily do not activate the backup system.
Cathay Pacific Bank pointed out that it has contracts with construction manufacturers, and they all carry out equipment maintenance and regular maintenance in accordance with regulations. After the incident, an investigation has been launched together with electromechanical experts, and the electromechanical system and backup measures will be strengthened. In the part of investigating the responsibility of the manufacturer, it will be handled in accordance with the contract following the reasons are clarified.
As for the affected area of the Cathay United Bank downtime incident, it is divided into three parts. First, the credit card receipt was abnormal from 11:00 a.m. to 1:25 p.m. on the 8th, and a total of 52 special stores where Cathay United Bank was responsible for acquiring the bills were unable to swipe the card; the second was the online banking service, at 10:00 a.m. on the 8th. An exception occurred from 3:23 pm to 3:23 pm. The third is the ATM service. An abnormality occurred from 11:38 a.m. to 3:25 p.m. on the 8th. A total of 26 cash deposits into self-accounts were affected, with an amount of NT$2.01 million, and a total of 199 cash deposits into other bank accounts were affected. The affected transactions amounted to 2.87 million yuan. The number and amount of affected transactions on that day were all recorded on the same day.
Cathay United Bank had previously been fined 2 million yuan by the Financial Supervisory Commission in April this year for 4 ATM crashes within six months, and Cathay United Bank was not allowed to set up new ATMs outside its business premises this year. The fine is the first in history. There is a big crash, and people from all walks of life are highly concerned regarding whether the Financial Supervisory Commission will impose administrative penalties on Cathay United Bank. Lin Zhiji, deputy director of the Banking Bureau, pointed out that Cathay United Bank has notified the Banking Bureau of major incidents on the 8th. According to regulations, Cathay United Bank must report the detailed information or follow-up processing within 7 business days. The World China Bank will report the situation in the follow-up letter and conduct necessary verification.
