Title: HKMA Enhances Credit Card Fraud Detection Measures in Hong Kong Amid Surge in Online Purchases
Background
There has been a notable increase in reports of credit card fraud in online purchases in Hong Kong. In response to concerns raised by Hon Edward Leung in the Legislative Council (LC), Secretary for Financial Services and the Treasury, Mr. Christopher Hui, provided the following details.
Questions and Answers
Total Number of Credit Cards and Zombie Cards
Hon Edward Leung asked about the total number of credit cards issued in Hong Kong, the number of cards that have not been used for over 18 months (zombie cards), and instances of fraudulent use of credit cards for online purchases. The numbers of cases and amounts lost from the past five years were also requested.
Responses from the HKMA
Mr. Christopher Hui stated that the HKMA does not maintain data regarding the total number of credit cards owned by each resident or the percentage distribution of credit cards. The total number of credit cards issued in Hong Kong from 2017 to 2021 was:
- 2017: 18.88 million
- 2018: 19.46 million
- 2019: 19.71 million
- 2020: 19.37 million
- 2021: 19.05 million
Regarding the number of zombie cards, the HKMA does not maintain statistics on this issue. Banks cannot restrict or suspend the use of credit cards based on inactivity to avoid inconvenience to customers. However, the HKMA and banking industry have implemented measures to enhance credit card security, such as imposing expiry dates and requiring cardholders to activate new cards before use.
Instances of Online Credit Card Misuse
The HKMA and Hong Kong Police Force have recorded the following numbers of cases and losses related to online credit card misuse from 2017 to 2022 (Figures in HKD millions):
| Year | Number of Cases | Loss Amount |
|---|---|---|
| 2017 | 333 | 4.8 |
| 2018 | 530 | 5.5 |
| 2019 | 123 | 2.3 |
| 2020 | 263 | 4.9 |
| 2021 | 371 | 5.5 |
| 2022 (Jan to Sep) | 339 | 5.0 |
Notification of Online Transactions
Cardholders receive notifications from their banks once an online credit card transaction is completed. Regardless of whether merchants adopt additional authentication, cardholders are advised to be proactive in checking their transaction records to identify any suspicious activity. In cases of unauthorized online transactions, cardholders are advised to report the incidents to their banks and the Police.
Efforts to Improve Online Credit Card Security
To address the issue of online credit card fraud, the HKMA has been working with banks and merchants to promote two-factor authentication for online transactions. Guidelines are planned to be issued, and card issuers may be required to adopt these measures in the future to better protect consumers in Hong Kong.
Conclusion
The HKMA is taking steps to improve credit card security in Hong Kong, with a particular focus on online transactions. By working with banking institutions, merchants, and the Hong Kong Police Force, the organization is committed to protecting consumers and combating credit card fraud effectively.