Financial Crime World

Hong Kong Banking Sector Faces Rising Cybercrime Threats

Introduction

Hong Kong’s banking sector is facing a significant threat from cybercrime, with sophisticated attacks targeting companies and individuals in the territory. The rise in cyberattacks has prompted authorities to take action to protect the public and prevent them from falling prey to phishing scams.

Statistics on Computer Crime Cases

According to statistics from the Hong Kong Police Force, there were 16,159 computer crime cases reported in Hong Kong in 2021, a 25% increase from the previous year. The financial loss due to these cases was estimated at approximately HKD3,024 million, highlighting the significant impact of cybercrime on businesses and individuals.

Measures to Combat Cybercrime

To combat this issue, several organizations have established the “SMS Sender Registration Scheme”. Starting from January 28th, 2024, major local banks will only use registered sender IDs starting with “#” to send one-way SMS to local mobile users. The scheme aims to prevent phishing scams by making it easier for people to identify legitimate messages.

Changes in HSBC’s SMS Notification System

HSBC will replace its traditional sender address with the following registered sender IDs:

  • #HSBC (General Information)
  • #HSBCsecure (Non-Forwarding, e.g. One-Time Password)
  • #PayMe (Non-Forwarding, e.g. One-Time Password)
  • #HSBCnotice (Dual-Forwarding, e.g. Transaction alert)

Tips to Protect Yourself from Scams

While the SMS Sender Registration Scheme is a significant step towards combating cybercrime, individuals must remain vigilant and take steps to protect themselves from scams. HSBC advises its customers not to disclose any personal, account or credit card information, or transfer money as per requested based on an unknown sender’s message.

  • Do not respond to unsolicited messages that ask for your login credentials or other sensitive information.
  • Use the “Scameter” tool launched by the police to evaluate the fraud risk of a phone number or URL before clicking on it.
  • Be cautious of legitimate-looking emails or messages that may contain phishing links or attachments.

Conclusion

In light of these threats, businesses in Hong Kong must take proactive steps to protect themselves against fraud and cybercrime. This includes equipping staff with the skills to spot and prevent scams, as well as taking the right steps if they do fall victim to an attack. By staying vigilant and taking necessary precautions, individuals and businesses can reduce their risk of falling prey to cybercrime and create a more secure online environment.