Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Tuesday, May 28, 2024

Banks get push over card fraud

Banks get push over card fraud

Two new guidelines have been issued for banks to enhance the safety of credit card use amid a surge in fraud cases and unauthorized transactions.
In a written reply to a Legislative Council member yesterday, acting secretary for financial services and the treasury Joseph Chan Ho-lim said banks have been told that, in addition to issuing an SMS one-time-password, they are required to perform additional authentication for binding of credit cards to a new mobile payment app, so as to confirm customers' instructions over a pending transaction.

Chan said 229 complaints against unauthorized transactions were received by the Hong Kong Monetary Authority in the first four months this year, down 162 compared with the same period last year, but still triple that of 2020, when it was 88 cases.

Ronick Chan Chun-ying, who represents the finance sector, said some banks refused to waive cardholders' liability for fraudulent large-value purchases made with cards that have been stolen on the ground of "gross negligence."

He asked whether the authority could clarify "gross negligence" and adopt new rules to protect credit card users.

Joseph Chan said the Monetary Authority requires banks to handle the unauthorized transactions and scam complaints appropriately and assist customers in raising chargeback requests based on circumstances.

Additionally, two circulars outlining the principles for handling unauthorized transactions and binding cards for contactless mobile payments were issued last week.

He said that under the new guideline, banks are required to adopt a pragmatic and empathetic approach to assist customers, such as considering the circumstances and background when handling cases.

If customers have been vigilant with card information and yet have been victims of fraud, banks should take their efforts into consideration, he said.

Additionally, banks are asked to conduct extra authentication beyond sending a one-time password when binding a credit card to a new mobile payment app.

Regarding education on preventing fraud, Joseph Chan said the HKMA has collaborated with police and the banking sector to proactively combat financial fraud.

"The HKMA, the police and major retail banks have formed the fraud and money laundering intelligence taskforce to identify and report suspicious accounts through information sharing and data analytics," he said.

The HKMA and the force cohosted a session with representatives from retail banks on April 21 to explore innovative approaches to anti-deception, he added.

The authority also supported the launch of an anti-fraud search engine "Scameter" by the police.

Related Articles

Hong Kong News
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.