Date
21 October 2017
The HKMA asked lenders to consider requiring dual identity verifications for clients to log on to their securities accounts. Photo: HKEJ
The HKMA asked lenders to consider requiring dual identity verifications for clients to log on to their securities accounts. Photo: HKEJ

HKMA asks banks to tighten security measures after hacking cases

The Hong Kong Monetary Authority has issued a circular to lenders urging them to step up security measures after certain bank clients’ online stock trading accounts were hacked for unauthorized transactions, the Hong Kong Economic Journal reports.

The banking watchdog asked lenders to consider requiring dual identity verifications for clients to log on to their securities accounts or conduct online transactions.

Lenders were also urged to put up “challenge and response” tests to prevent automated computer programs from breaking into clients’ accounts.

The call for better online security measures came after several stock trading accounts with The Hongkong and Shanghai Banking Corp. Ltd. and BOC Hong Kong Holdings Ltd. (02388.HK) were found to have been hacked.

BOC Hong Kong said clients of online or mobile banking will soon be required to enter a security code for identity verification aside from their regular passwords.

Reacting to the reported hacking incidents, lawmaker James To Kun-sun said banks should institute dual verification and set a limit to authorized amounts for all stock trading transactions.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/CG

Hong Kong Economic Journal

EJI Weekly Newsletter

Please click here to unsubscribe