High alert: there is a growing awareness of cybercrime in Hong Kong as estimated financial losses by banks soar by 50 per cent in past year
Present platform, whereby banks share knowledge of threats across the region, is likely to be expanded to other financial institutions
Hong Kong is a target for cybercrime – a threat that will grow, say risk advisory experts. Technology crimes caused an estimated financial loss of HK$1.8 billion last year, a 50 per cent increase from 2014.
“Hong Kong was ranked the ninth most targeted economy for cybercriminals in the banking sector for the first quarter of this year,” says Ricky Cheng, director of risk advisory services at BDO.
Hong Kong is targeted by organised cybercriminals, says Eugene Ha, deputy managing partner at Grant Thornton. “Illegal activities always follow the money. Even though the number of cybercrime cases has not drastically increased, financial losses from cybercrime have increased by 50 per cent.”
Control and governance are the key factors in combating cybercrime. In May, the Hong Kong Monetary Authority (HKMA) launched the Cybersecurity Fortification Initiative (CFI), a move welcomed by professionals.
The CFI provides guidelines for banks to follow, according to their size and scope.
“It allows banks to evaluate their existing security status against the framework so as to comply with the HKMA standards. The framework also provides a common language/protocol for all stakeholders to communicate more effectively,” Ha says.
“The HKMA has tested the water in the banking sector,” Cheng adds.
