TWSE Market Insights

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In recent years, fraud cases have proliferated in Taiwan, with some citizens suffering infringement on their rights and financial losses, which led to Taiwan’s government placing high priority on this issue. Since June 2022, the “Next-Generation Anti-Fraud Strategy Guidelines” has been implemented, and in July 2024, the “new four anti-fraud acts” were passed on third reading. Through inter-departmental collaboration, fraud is combated collectively. Given that financial investment fraud accounts for the largest share of losses among all types of fraud, the Taiwan Stock Exchange (TWSE) recognizes its significant responsibility and has actively increased resources for anti-fraud education and awareness. Since 2024, it has launched the large-scale advocacy campaign series, “5D Anti-Fraud Initiative,” which has garnered widespread attention in society. Additionally, the TWSE continues to encourage securities firms to implement anti-fraud dissemination. Building upon the refinement measures introduced in 2024, it continued to conduct anti-fraud evaluation programs for securities firms in 2025, as well as regularly provided anti-fraud materials to securities firms and organized anti-fraud awareness sessions for practitioners. Furthermore, a dedicated anti-fraud section has been established on Line Today, inviting securities firms to contribute content. The aim is to enhance the anti-fraud awareness of the investing public through diverse promotional channels.

Since the 165 Anti-Fraud Dashboard of the National Police Agency of the Ministry of the Interior began publishing monthly fraud-related financial losses in August 2024, the total financial loss recorded in November 2025 amounted to NT$5.991 billion, with approximately 13,000 cases handled. Compared with the monthly figures in August 2024, the amount of financial losses decreased by 57%, while the number of cases handled declined by 36%. These results demonstrate that, through the concerted efforts of the government and public and private sectors, public awareness has been enhanced, effectively reducing the risk of falling victim to fraud.

Since 2024, the TWSE has drawn on mechanisms such as the “Sustainable Finance Evaluation” and “Corporate Governance Evaluation” to design an anti-fraud evaluation program for securities firms. The program assesses the effectiveness of anti-fraud measures across four areas: “anti-fraud organization management and effectiveness,” “anti-fraud advocacy activities and training,” “anti-fraud customer care measures,” and “anti-fraud information disclosure.” Securities firms are required to submit the corresponding supporting documentation to facilitate the TWSE’s evaluation process. The evaluation program conducted in 2024 was held for the first time and was primarily incentive-oriented, with a total of 23 securities firms participating in the initiative.

To provide clear guidance for securities firms in planning and implementing anti-fraud projects, the TWSE strengthened the second evaluation program in 2025. The number of questions was increased from 22 in the previous year to 40 this year, encompassing qualitative, quantitative, and short-answer questions. All 46 securities firms serving individual clients (excluding foreign securities firms and firms with dual operations) were urged to submit evaluation materials. Firms that fail to meet the basic threshold will be reminded by the TWSE to make improvements. It is expected that all securities firms will allocate resources to anti-fraud dissemination, enhance internal staff training, and foster a corporate culture of fraud prevention. A total of 23 securities firms were ultimately recognized for their outstanding performance in the evaluation. At the awards ceremony held on November 11, 2025, trophies and prize money were presented by the President of the TWSE, Ms. Lee, in appreciation of the securities firms’ contributions to fostering a healthier and more robust capital market.

First, upon reviewing the evaluation materials of the 46 securities firms, it was found that, in terms of anti-fraud organizational management and outcomes, over 90% of firms have established dedicated units. For example, establishing an anti-fraud task force under the Fair Client Treatment Committee, or directly forming an anti-fraud committee, while publicly announcing clear procedures for handling reported fraud cases and subsequent reporting mechanisms. Eighty percent of securities firms have dedicated anti-fraud units overseen by executives at the vice president level or above, demonstrating how securities firms place significant emphasis on anti-fraud issues. Notably, during this evaluation period, securities firms collectively invested nearly NT$50 million in anti-fraud related activities, including anti-fraud dissemination activities, internal training programs, establishing dedicated anti-fraud sections, and procuring external systems for detecting counterfeit information. This indicates that the evaluation program has effectively served as a catalyst for further initiatives.

In terms of dissemination effectiveness, 46 securities firms organized approximately 2,000 anti-fraud dissemination events during the evaluation period, including client briefings, campus recruitment seminars, and investment lectures, attracting over 830,000 total attendees. Regarding anti-fraud information disclosure, over 90% of securities firms have established dedicated anti-fraud sections on their official websites. Cumulatively, these sections, along with social media platforms and fan pages, have shared a total of 3,700 anti-fraud announcements and news articles. Finally, in terms of client care, securities firms proactively reached out to elderly clients via phone calls, in-person visits, or on-site consultations, with a cumulative total of 164,000 client interactions. Compared with the existing internal control mechanisms for goodwill care interviews, the number of elderly clients contacted by securities firms has increased significantly. Some firms even mobilized sales representatives to conduct individual phone calls and care checks for each elderly client they serve, which is commendable and worthy of praise.

Overall, although securities firms are unable, like banks, to directly control clients’ cash flows or calculate the amount of prevented fraud losses as a measure of anti-fraud performance, as noted earlier however, the current amount of financial losses from fraud has decreased significantly compared with 2024. We believe that the efforts and resources devoted by securities firms are part of the key factors underlying this trend.

In 2025, the TWSE continued to host two anti-fraud dissemination sessions for securities firms’ practitioners. It was also honored to invite Ms. Tsai Pei-ling, Commissioner of the Taipei City Government Clean Government Committee, and Mr. Liu Wei-hung, Chief Prosecutor of the Keelung District Prosecutors Office, to deliver thematic presentations. Commissioner Tsai proposed that banking, securities, insurance, and virtual asset platform businesses should integrate their efforts and collaborate with public agencies to jointly prevent fraud. Implementing anti-fraud measures with awareness and empathy would enable more meticulous and human-centered approaches. Additionally, Chief Prosecutor Liu reminded securities practitioners that assisting in the promotion of non-compliant investments or guaranteed profits for the sake of boosting performance could result in severe criminal liability. Fraud prevention is not merely a matter of compliance but also a demonstration of professional ethics and social responsibility. The thematic content was highly beneficial to all attendees.

On the other hand, since 2024, the TWSE has been collecting anti-fraud materials from securities-related institutions on a quarterly basis, including anti-fraud dissemination videos, posters, and advocacy audios for use by securities firms. These materials can be placed on securities firms’ official websites, social media, or apps, or posted on the business premises to help securities firms reduce their cost of production.

Looking ahead, the “Anti-Fraud Joint Defense Section” currently hosted within the TWSE’s Market Observation Post System will undergo optimization and be renamed the “Securities Anti-Fraud Joint Defense Section,” with its launch scheduled for the first quarter of 2026. The new website will present the statistical information of over 500 fraud cases already shared by securities firms more clearly. Improvements to the UI/UX will enhance the user experience and keyword search functionality will be more comprehensive, enabling the public to quickly access the latest fraud patterns reported by securities firms, thereby achieving the effect of joint defense for the entire public. Finally, the TWSE will continue to diligently align with government policies to enhance anti-fraud measures in the securities market, working hand in hand with securities firms to safeguard the property of the general public and foster a healthier capital market.