Hong Kong Monetary Authority Expands Suspicious Account Alert System Amid Rising Fraud Risks

The Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Police Force and the Hong Kong Association of Banks (HKAB), has announced a significant expansion of its Suspicious Account Alert system. The initiative, set to begin on August 4, 2024, will now encompass both internet banking and physical branch transactions, according to the Hong Kong Monetary Authority.

Broader Coverage for Enhanced Protection

Initially launched in November 2023, the Suspicious Account Alert system was designed to warn customers about high-risk fraud scenarios based on data from the Police's Scameter, a scam and pitfall search engine. The initial phase covered fund transfers using the Faster Payment System (FPS) proxy IDs, including mobile numbers, email addresses, and FPS Identifiers (FPS ID). By the end of June 2024, more than 655,000 alerts had been issued, averaging 3,000 alerts per day.

With the new expansion, the alert system will now include retail customers' fund transfers conducted at bank counters, as well as online fund transfers within the same bank or inter-bank/SVF transactions using account numbers. Customers will receive warnings if the payee’s account number, mobile number, email address, or FPS Identifier is flagged as “High Risk” in Scameter, regardless of the transaction method.

Additional Anti-Fraud Initiatives

In addition to expanding the alert system, HKMA introduced two new initiatives aimed at further protecting bank customers. The first is the “Scameter+” mobile application, which will provide timely alerts about fraudulent bank websites or phone numbers. The second initiative involves enhancing the security of online credit card transactions by requiring authentication via banks’ mobile banking applications instead of SMS one-time passwords, in response to evolving malware threats.

HKMA is urging the public to verify payment details and the payee’s identity before proceeding with transactions. The authority advises the public to:

• Refer to HKMA’s registers of authorized institutions and SVF licensees, and use the Police’s anti-fraud resources including the “Scameter+” mobile application and Anti-Scam Helpline 18222.
• Download or upgrade mobile applications only from official app stores or websites.
• Beware of fraudulent links.
• Always protect personal information.

Continued Efforts Against Digital Fraud

HKMA, in collaboration with the Police and the banking industry, remains committed to raising public awareness and combating digital frauds. The measures announced are part of ongoing efforts to protect customers from the growing threat of digital fraud, including malware scams.

For more information, visit the Hong Kong Monetary Authority website.