The Hong Kong Monetary Authority has upgraded its anti-digital fraud measures by launching a new framework called "Electronic Banking Security ABC"

To address increasingly complex digital fraud methods, the Hong Kong Monetary Authority (HKMA) has announced the launch of a series of new measures under the "Electronic Banking Security ABC", which will enhance the security of public funds through three core strategies while continuously raising citizens' awareness of fraud prevention.

Triple protection builds a safety defense line

This new framework mainly proposes three major improvement directions for the authorized institutions:

A. in-App authentication

By default, device binding verification is adopted instead of SMS OTP

It is suitable for high-risk operations such as logging in and transferring funds to unregistered accounts

It will be implemented first in payment card transactions by the end of 2024

B. Bye to unused functions

Allow customers to disable the high-risk online banking function

The first stage focuses on "online increase of transfer limits" and "third-party payee registration".

Establish risk management measures such as cooling-off periods

C. Intercept suspicious payments

Optimize the early warning mechanism for suspicious accounts

Adjust the duration of the warning and the validity of the content

More than 50,000 warnings were issued in the second half of 2024

Implementation effectiveness and future planning

Since the implementation of device binding verification, the fraud rate of card-issuing banks in Hong Kong has dropped sharply by nearly 80%. The Hong Kong Monetary Authority emphasized that it will:

Continuously monitor the risks of emerging technologies such as deepfake

Expand measures to corporate and private banking customers

Strengthen public education in collaboration with the banking industry

Improve the anti-fraud system through the "generative AI sandbox"

Financial institutions should explain the operational details to their clients in concise language. Institutions that have genuine implementation difficulties may negotiate alternative solutions with the Hong Kong Monetary Authority. This series of measures marks a new stage of proactive defense for Hong Kong's financial security system and sets a new benchmark for fund security in the digital age.