Financial Crime World

Hong Kong’sNew Tool to Combat Check Fraud: The Scameter

The Hong Kong Monetary Authority (HKMA) has recently launched the Scameter, a search engine that empowers consumers and financial institutions to check payees for potential fraud connections. Learn how this innovative tool helps safeguard against check fraud and strengthens anti-fraud policies.

Key Features of the Scameter

  • The public can use the Scameter to search for bank account numbers, telephone numbers, and Faster Payment System (FPS) proxies to check for red flags in the Hong Kong Police Force (HKPF) databases.
  • Bank staff and stored-value facilities (SVF) can use the Scameter to strengthen their fraud prevention policies.

The Increasing Issue of Fraud Cases in Hong Kong

  • According to the HKPF, fraud cases have risen by 42% during the first half of 2022 compared to the same period last year.
  • Approximately HK$2.1bn ($267m) in losses were caused by fraud cases.
  • Shopping fraud, employment fraud, investment fraud, and telephone deception accounted for more than 60% of the reported cases.

Partnerships and Collaborative Measures to Tackle Fraud

  • The HKMA collaborates with banks, SVF licensees, and local and global partners to implement new measures for fraud prevention.
  • Intelligent data sharing to quickly identify and block high-risk activity.
  • The Fraud and Money Laundering Intelligence Taskforce (FMLIT) has identified over 19,000 previously unknown mule accounts using intelligence sharing.
  • Retail banks have introduced 24/7 stop payment features for newly received fraud intelligence.
  • Practical guidance on fraud prevention and money laundering has been updated through a FAQ format.

The HKMA’s Initiatives to Combat Fraud

  • Scameter: Public and financial institutions can use it to screen payees for potential fraud cases.
  • Fraud and Money Laundering Intelligence Taskforce (FMLIT): A joint partnership between the HKMA and HKPF with 23 participating retail banks.
  • Anti-Money Laundering Regtech Lab (AMLab): A collaboration between the HKMA, Cyberport, and Deloitte to help banks explore and adopt regtech solutions to enhance AML/CTF activities.

Conclusion

The HKMA, in its continuous dedication to combatting fraud, provides a comprehensive and robust fraud prevention ecosystem for both the public and financial institutions through partnerships, innovative tools, and collaborative measures.