China launches tens of thousands of cyberattacks against Taiwan's financial system per day, senior banker says

A senior Taiwanese banker warned that China launches at least 10,000 cyberattacks daily against Taiwan's financial systems, telling participants at a tabletop exercise that economic security is already on the front lines.

Chen Song-xing (陳松興) delivered the warning on April 16, the second day of the 2026 TTX, a crisis simulation exercise where TCN serves as exclusive media partner. The exercise moved beyond conventional military contingencies to examine vulnerabilities across financial stability, industrial competitiveness, economic resilience, and semiconductor and artificial intelligence strategy.

“War Is Not Just Military”: financial frontline already under pressure

“China launches at least 10,000 cyberattacks per day even in peacetime, attempting to breach Taiwan’s financial systems,” he said in opening remarks, framing conflict as something that extends far beyond kinetic warfare.

When discussing war, Chen said, policymakers must account for economic, financial, and commercial dimensions. He identified three elements that must not fail: continuity of payment systems, availability of liquidity, and preservation of confidence. 

Markets measured in hours, not weeks

Chen underscored the speed at which financial instability can unfold. Early warning signs — margin calls, settlement delays, rising insurance costs, and quietly evaporating liquidity — can rapidly trigger a loss of confidence.

“Markets do not wait for clear signals. They price risk immediately,” he noted. Once confidence weakens, private sector actors naturally revert to self-preservation: banks tighten lending, insurers reassess exposure, shipping firms adjust terms, and supply chains slow.

The critical variable, he emphasized, is time. Financial instability is not measured in weeks or months, but in hours.

Cyber warfare and the need for offline resilience

Turning to cybersecurity, Chen said financial institutions already face tens of thousands of intrusion attempts daily under normal conditions. In more acute scenarios, Taiwan must be prepared to maintain basic financial services even offline.

He stated that cash, digital payments, and EasyCard — a contactless smartcard for traveling and making small payments across Taiwan — are all common payment methods not necessarily tied to bank networks. He added that financial institutions maintain backup systems, including backups for the backups, and conduct a significant number of drills for contingencies and emergency situations.

Equally critical is communication, Chen said. Institutions must establish unified external channels to rapidly counter misinformation and prevent panic.

According to Chen, cyber warfare and gray zone tactics can generate economic consequences akin to wartime disruption without a single shot being fired. The first battlefield in such scenarios is financial confidence and the continuity of payments.

As shocks propagate, capital outflows and exchange rate volatility often emerge when energy disruptions translate into monetary pressure, Chen said. This dynamic can force central banks into a dilemma: defend the currency or maintain domestic liquidity.

Once currency pressure builds, inflation expectations accelerate, eroding credit quality. Corporate cash flow strains intensify, and political pressure mounts.

“Trust can be eroded very quickly,” Chen warned, “and response time is extremely limited.”

Taiwan’s blind spot: economic preparedness lags

Chen cautioned that while Taiwan has devoted significant attention to potential military conflict and energy supply disruptions, it has not invested enough in preparing for economic contingencies. Resilience, he stated, must first be anchored in financial markets and the broader economic system.

He illustrated the point with the recent US military action against Iran, which led to the closure of the Strait of Hormuz. He told TCN that Taiwan must be able to rely on itself, because foreign allies' leaders may prove unreliable when war breaks out. 

Bill Stanton, a retired American career diplomat who served as director of the American Institute in Taiwan (AIT) — the de facto US embassy in Taiwan — said at the event that it was "depressing" to see the US wasting time and lives in Iran rather than focusing on China.

Stanton said that he was pleased to see bright minds of Taiwan gathered at the TTX event to discuss what "may be an inevitable crisis." 

Chen said the ongoing conflict also caused unexpected ripple effects in Taiwan, including a shortage of plastic bags. He said consumers and businesses feared disruptions in liquefied natural gas (LNG) and raw materials, driving demand surges regardless of whether cost increases were officially confirmed.

At such moments, Chen reiterated, the key question remains: what must not break? His answer: payment systems, liquidity, and confidence.

Stress testing confidence through the TTX

Chen said some had told him that tabletop exercises and war games might heighten public anxiety — a notion he rejected outright. "Not conducting these exercises does not make risks disappear," he said. Exercises are essential for testing whether current systems can withstand shocks.

Speaking to TCN, Chen added a personal note, saying these exercises allow him and other participants — some of whom he has known since his college years — to pass on hard-earned experience to younger generations.

That commitment extends to the classroom, he said. Chen told TCN that he continues to teach at multiple universities each semester, aiming to equip students with the tools to navigate an increasingly complex and uncertain global landscape.