Hong Kong Expands Fraud Alert System to ATM Transactions

The Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Police Force and the Hong Kong Association of Banks, has announced an expansion of its Suspicious Account Alert system to encompass transactions conducted at Automated Teller Machines (ATMs). This initiative, set to commence on December 8, 2024, involves 22 participating banks implementing the alert mechanism at their ATM networks, according to the Hong Kong Monetary Authority.

Enhanced Fraud Detection at ATMs

The enhanced alert system will now include real-time transfers and cash deposits conducted at ATMs, covering a significant portion of daily banking transactions. This expansion aims to alert customers when a recipient’s account information is flagged as 'High Risk' by the Police’s Scameter, a tool designed to detect scams and fraud. Customers will be notified of potential fraud risks before finalizing their transactions.

Background and Previous Phases

This initiative follows the introduction of the alert mechanism in November of the previous year, initially focusing on transactions using Faster Payment System (FPS) proxy IDs. The system was later extended to include internet banking and physical branch transactions. In the third quarter of this year alone, banks issued over 24,000 alerts, successfully dissuading customers from proceeding with high-risk transactions.

Ongoing Anti-Fraud Efforts

The HKMA emphasizes the importance of verifying payment details and the identity of payees before completing any transaction. The authority advises customers to terminate transactions immediately if any doubts arise. The HKMA, alongside the Police and banking industry, remains committed to assessing and enhancing anti-fraud measures to combat digital scams effectively.

The expansion of the Suspicious Account Alert system reflects Hong Kong's proactive approach to safeguarding financial transactions and protecting citizens from the growing threat of digital fraud.