2 days Ago By SCMP Editorial
Scams can happen in the blink of an eye as cybercriminals race to move stolen money before victims, banks and law enforcement can react. Hong Kong’s efforts to speed up procedures for freezing accounts linked to fraud should be welcomed, as long as the new tools do not inadvertently harm the city’s status as a global finance hub. The Post recently learned that police and the de facto Hong Kong central bank are in talks with financial institutions about creating a faster protocol for halting fund transfers when fraud is suspected.
According to a source, “early stage” tests of the system are under way. The Hong Kong Monetary Authority (HKMA) has not provided specifics about the plans, other than to say it is maintaining “close dialogue” with the banking industry and relevant stakeholders to combat fraud and scams that involve billions of dollars each year. Faster account freezing is seen as a way to fight deception cases, especially when the targets are elderly or newcomers.
Some economists have welcomed efforts to speed up the process and, in turn, boost confidence about the safety of the finance sector. Police had already recorded 3,149 deception cases for the year as of January. The latest available figure was 11.
8 per cent higher than it was in 2023, but slightly down from last year. Authorities are hopeful that a slowing pace of new crimes means enforcement and awareness campaigns are paying off. The HKMA recently started requiring banks to conduct mandatory name-matching for real-time fund transfers exceeding HK$1,000.
The banks have until the end of May to comply..
