HK expands anti-fraud alert system to include ATM transactions

The Hong Kong Monetary Authority (HKMA), in collaboration with the police and the Hong Kong Association of Banks (HKAB), announced the expansion of the Suspicious Account Alert to include transactions at automated teller machines (ATMs), encompassing cash deposit machines.

Starting from Sunday (Dec 8), 22 participating banks will gradually implement the alert mechanism at their ATMs and provide their customers with detailed information on the implementation.

The scope of the Suspicious Account Alert mechanism, has now expanded to include transfers conducted at ATMs, real-time same-bank transfers, inter-bank transfers, and cash deposits. This expansion aims to cover the majority of the public's day-to-day transfers.

Whenever a customer conducts a funds transfer or cash deposit at a bank branch, an ATM, or via online banking, the customer will receive an alert to the associated fraud risk before confirming the transaction if their account number, mobile phone number, email address, or Faster Payment System (FPS) Identifier is labeled as "High Risk" in the Police's Scameter, a scam and pitfall search engine.

The alert mechanism was first introduced in November last year, initially covering funds transfers using FPS proxy IDs. It was further expanded in August this year to include internet banking and physical branch transactions.

When customers initiate a bank transfer, banks will issue high-risk alerts based on data from the Scameter. In the third quarter of this year, banks issued over 24,000 alerts, which effectively reminded customers not to proceed with high-risk transactions in a timely manner.

The HKMA urges the public to carefully verify the payment details and the payee's identity before proceeding with a transaction. If in doubt, the public should immediately terminate the transaction.

The HKMA will continue to work closely with the police and the banking industry to assess the effectiveness of anti-fraud measures and actively combat digital scams.