Financial Crime World

Hong Kong’s Financial Systems Under Threat: A Growing Concern

Despite Low Incident Rate, Businesses Fear Data Loss and Reputational Damage

Hong Kong’s businesses may think they are safe from cyber threats, but recent statistics suggest otherwise. According to a report by the APAC State of Incident Report 2022, despite having one of the lowest rates of cyber incidents in the region, Hong Kong organizations are still vulnerable to data loss, business interruption, and reputational damage.

Key Findings

  • 43% of Hong Kong businesses reported experiencing cyber incidents, compared to an average of 59% across Asia Pacific.
  • Data loss topped the list of worries for 68% of respondents, with a staggering 40% of recent cyberattacks resulting in data breaches.
  • Business interruption and reputational damage also ranked as top concerns, with 54% and 57% of organizations respectively citing these as major risks.

Regulatory Fines on the Horizon

Experts warn that regulatory fines or sanctions are becoming increasingly likely as Hong Kong’s Privacy Commissioner for Personal Data steps up enforcement of data protection laws. Despite this, zero respondents reported suffering from such fines following a cyber incident - a situation that is unlikely to remain unchanged.

Organizations Taking Proactive Steps

In response to the growing threat, over half of surveyed organizations have implemented measures to address cybersecurity threats. The top three priorities include:

  • Buying hardware and software security tools (74%)
  • Training employees on cybersecurity best practices (70%)
  • Monitoring systems for potential threats (70%)

Staying Ahead of the Threat

As the region’s financial systems become increasingly interconnected, businesses must take proactive steps to protect themselves against cyber threats. With the APAC State of Incident Report 2022 highlighting the need for incident response, digital forensics, breach notification, and managed detection services, it is clear that Hong Kong organizations cannot afford to be complacent.

The Clock is Ticking

With regulatory fines and sanctions looming on the horizon, businesses must prioritize cybersecurity and invest in measures to prevent data loss, business interruption, and reputational damage.