Cathay United Bank’s ATM and online banking crashed on the 8th and the credit card swiping was completely unusable. Cathay United Bank apologized today and proposed a compensation plan to provide the public with 6 commission-free interbank rebates from October 12-16; cardholders affected by the Costco payment, the Doric Rebate has been increased from 1% to 3%.
Cathay United Bank issued a press release this evening explaining the compensation plan, noting that it will conduct a thorough review and propose improvement plans.
Cathay United Bank pointed out that from 12 to 16 (5 days total), people using Cathay United Bank ATMs for Taiwan dollar interbank transfers and Taiwan dollar interbank withdrawals (who are Cathay United Bank customers or not), require interbank transfer discounts and interbank withdrawal fees to be exempted 6 times and a post-redemption and account mechanism to be adopted.
The 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 to 15:00 on the 8th, the transaction amount (including credit card transactions and cash transactions) during the above period, the Dolly Gold award increased from 1% to 3%. Additionally, merchants using Cathay United Bank’s takeover service on the 8th will also offer a discount on the bank’s card takeover fee on the 15th. Relevant detailed measures will also be announced on Cathay United Bank’s official website.
Lin Zhiji, Deputy Director of the Banking Office of the Financial Supervisory Commission, told a regular press conference today that the owner of Cathay United Bank’s Neihu Information Building carried out the project to replace the old high-voltage transformer on the morning of the 8th. Power was maintained during the replacement process, however, during this process, the generator overheated and the load was reduced to provide power, which affected the air conditioner and caused some server for overheating, which in turn affected the Cathay United Bank ATM, online banking and credit card acquisition services. As for why Cathay United World Bank did not activate the backup system, Lin Zhiji pointed out that as the manufacturer of the transformer replacement project immediately assessed that normal power could be restored at 12 noon of the same. day, Cathay United World Bank felt that the project completion time was shorter than starting the off-site backup system. Given the time required, we decided to complete the construction of this project with all our strength and for the moment we will not activate the backup system.
Cathay Pacific Bank stressed that they have contracts with construction manufacturers and they all perform equipment maintenance and regular maintenance in accordance with regulations. After the accident, an investigation was initiated together with electromechanical experts and the electromechanical system and backup measures will be strengthened. In the part of ascertaining the manufacturer’s liability, it will be treated in accordance with the contract after the reasons are clarified.
As for the area affected by the Cathay United Bank downtime incident, it is divided into three parts. First, the credit card receipt was abnormal from 11:00 to 13:25 on the 8th, and a total of 52 specialty stores where Cathay United Bank was responsible for acquiring the bills of exchange were unable to crawl the paper; the second was the online banking service, at 10:00 on day 8. An exception occurred from 15:23 to 15:23. The third is the ATM service. An anomaly occurred from 11:38 am to 3:25 pm on day 8. A total of 26 cash deposits on self-service accounts were affected, for an amount of NT $ 2.01 million, a total of 199 cash deposits in other bank accounts were affected. 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 was previously fined 2 million yuan by the Financial Supervisory Commission in April of this year for 4 crashes of 4 ATMs in six months and was not allowed to install new ATMs this year. outside its business premises. There was a great crash and people from all walks of life were very concerned that the Financial Supervisory Commission would impose administrative sanctions on Cathay United Bank. Lin Zhiji, Deputy Director of the Banking Office, stressed that Cathay United Bank reported serious incidents to the Banking Office on the 8th. According to regulations, Cathay United Bank must report detailed information or follow-up processing within 7 business days. The World Bank of China will report the situation in the follow-up letter and conduct the necessary checks.
