Hong Kong Banks Urged to Boost Cybersecurity Measures
Surge in Online Scams and Cyberattacks
The Hong Kong banking sector has been warned to step up its cybersecurity measures as online scams and cyberattacks continue to multiply. Figures from the Hong Kong Monetary Authority (HKMA) show that cyberattacks on banks more than doubled last year.
Key Statistics:
- 142 reported cases of online scams in 2022, a threefold increase from 44 reported incidents in 2017
- Phishing was the fastest-growing type of scam, with 62 reported cases compared to just seven in 2017
Industry Leader Calls for Increased Vigilance
Mary Huen Wai-yi, chairwoman of the Hong Kong Association of Banks (HKAB), emphasized the importance of risk management to protect customers’ interests. “It is essential for the banking sector to step up its cybersecurity measures to safeguard customer data and prevent online scams,” she said.
HKMA Takes Steps to Improve Cybersecurity
The HKMA is taking proactive steps to improve cybersecurity among banks, including checking their ability to recover from a cyberattack. This move aims to enhance the overall security of Hong Kong’s banking sector.
Virtual Banks on the Horizon
The HKMA is due to issue its first virtual bank license in the first quarter of this year, with Standard Chartered Bank among 29 applicants vying for a spot. Virtual banks operate online and have no physical branches, but they can bring new energy and services to the banking sector.
Greater Bay Area Initiative Boosts Prospects
The Greater Bay Area initiative aims to create an economic hub by linking Hong Kong to Chinese cities in the Pearl River Delta. This region has a massive market of 70 million people, offering lenders opportunities to work with technology companies based in Shenzhen to develop new fintech products.
Lenders can benefit from this initiative and expand their services to meet the growing demand for financial inclusion. The Greater Bay Area initiative presents a significant opportunity for Hong Kong’s lenders to increase their presence in the region and contribute to its economic growth.
Overall, the call for increased vigilance in cybersecurity measures is timely, given the surge in online scams and cyberattacks. By stepping up their efforts to protect customers’ data and prevent online scams, Hong Kong banks can ensure a safer and more secure banking experience for all.