The receipts looked real: Suspicion of a tens of millions scam in Taiwan

Taiwan's Ministry of Finance is investigating suspected lottery fraud after two men named Zhang tried to redeem receipts worth millions of Taiwanese dollars that did not match official records. The two were arrested in Penghu; investigators are checking if a loophole in the verification system was exploited, while authorities suspend payments and seek to recover already-redeemed funds.

Taiwan's Ministry of Finance has launched an investigation into suspected lottery fraud and possible exploitation of a loophole in the receipt verification system, after two men surnamed Zhang attempted to redeem prizes worth millions of Taiwanese dollars using receipts that did not match official records. The two were arrested in Penghu. The case came to light when the pair presented at a financial institution in Penghu two receipts that allegedly won the "Special Prize," each worth NT$10 million (about US$307,000), as well as a third receipt for NT$200,000. A check by institution employees revealed the receipts did not match official records. According to the Ministry of Finance, during the May-June and July-August 2023 lottery periods, no receipt issued by a local business in Penghu had won the Special Prize, partly because only five such winners have been recorded in Penghu over the past 16 years. One suspect attempted to redeem a NT$10 million prize on two separate occasions, and both times his request was denied. The investigation found that the suspects managed to receive payments for lower-value wins: two wins of NT$40,000 each, two wins of NT$10,000, and prizes under NT$1,000 at convenience stores. In total, the group held over 30 winning receipts and redeemed more than 20 of them within 13 days, for a cumulative amount of NT$199,600 (about US$6,140). A senior official at the Ministry of Finance, Lo Mei-chung, explained that the original receipts were legitimately issued by businesses, but the redemption vouchers presented by the suspects were not genuine, and it appears a mechanism allowing vouchers to be printed at ibon self-service kiosks was exploited. "We are actively working to understand how the suspects obtained information on unclaimed prizes," she said. The Ministry of Finance announced a temporary suspension of prize payments and actions to recover more than NT$190,000.