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Cloud Call Center Community Featured Article

[October 16, 2006]

Store manager probed over EasyCard fraud

(China Post Via Thomson Dialog NewsEdge) A convenience store manager in Taipei County is under investigation for swindling money from the Taipei Smart Card Corp. (TSCC) by getting illegal refunds for money he actually did not remit in the value-add mechanism, according to a report in the Apple Daily.


The TSCC issues the electronic EasyCards to allow customers more easily use the public transport service provided by Taipei Rapid Transit Corp. (TRTC) and bus companies.

Customers in the Greater Taipei area may add new value to the cards for future rides either at the mass rapid transit (MRT) stations or at contracted convenience stores.

Chen He-zhong, manager of a convenience store in Banqiao City in Taipei County found last year that a could use an EasyCard to add value to the card at his own store and then cut off the power source of computer to prevent the transmission of the financial transaction data to the TSCC.

By the rules set by the company, customers may get cash refunds under NT$5,000 at the MRT stations.

Using the cards belong to him and his wife, Chen managed to get a accumulative refund of over NT$500,000.

Though the company did not find the loophole caused by the time lag of the computer system, Chen's unusually high frequency of applying for refunds caught the attention of staff at the MRT stations.

A probe by the TSCC uncovered the scam. The company said this was the first such illegal fraud taking advantage of the value-storing function of the highly popular card.

The firm has started modifying its computer system to plug the loophole.

Although Chen has returned the money he stole from the company, he is currently being probed for fraud.

Copyright 2006 China Post. Source: Financial Times Information Limited.

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