HKMA, privacy watchdog launch joint action to tighten safeguards against fraud and data misuse

The Hong Kong Monetary Authority and the Office of the Privacy Commissioner for Personal Data will roll out a series of measures to strengthen cooperation in combating fraud and enhancing protection against the misuse of personal data.

In a joint statement issued on Tuesday, the two regulators said the initiative responds to the increasing sophistication of fraud and aims to ensure that banks’ systems and safeguards are robust, while best practices are shared with the industry on a timely basis.

The measures will include joint risk-based examinations of selected banks’ anti-fraud systems and controls.

During the examinations, the HKMA will focus on assessing the effective implementation of anti-fraud measures set out in circulars issued in December 2024 and April 2025. The PCPD, meanwhile, will review banks’ data security measures and access controls designed to safeguard personal data against misuse and leakage.

“Fraud continues to grow in scale and complexity,” the statement said. “During the first 10 months of 2025, a total of 35,831 deception cases were reported in Hong Kong, resulting in total losses amounting to HK$6.4 billion.”

The HKMA and PCPD will also step up public education on the latest scam tactics and the importance of protecting personal data, including bank account information.

Key stakeholders, including the Hong Kong Police Force, the Hong Kong Association of Banks, and industry representatives, will partner in outreach activities targeting the general public and specific segments of society.

Privacy Commissioner for Personal Data Ada Chung Lai-ling said it is imperative for the banking industry to adopt stringent data security and monitoring measures to prevent unauthorized or accidental access to, or misuse of, customers’ personal data.

HKMA Chief Executive Eddie Yue Wai-man said the collaboration “marks a significant milestone” in strengthening an ecosystem approach to combating the abuse of the banking system for fraudulent purposes.