HKMA alerts public to rising scams involving unauthorized mobile wallet card binding

The Hong Kong Monetary Authority has issued a warning to the public and the banking sector after receiving multiple reports from lenders regarding fraudulent schemes involving the unauthorized binding of payment and ATM cards to contactless mobile payment services.

The de facto central bank has shared the operational tactics behind the scams with financial institutions across the city, urging banks to remain vigilant and step up fraud prevention education for their customers.

According to the regulator, scammers typically pose as merchants, service providers, or other recognized organizations using phishing text messages, fake websites, or fraudulent phone calls. 

Using various pretexts, such as offering customer compensation or refunds for goods, the fraudsters trick unsuspecting individuals into surrendering sensitive financial information, including card numbers and ATM personal identification numbers.

After acquiring the credentials, the criminals attempt to register the victims' cards on digital wallets installed on their own devices. 

To complete the setup, they manipulate the cardholders into authorizing the binding requests through mobile banking apps or two-way text verification prompts, subsequently draining funds through unauthorized contactless transactions.

Highlighting that linking payment cards to mobile wallets is a high-risk process, the monetary authority cautioned residents never to click on hyperlinks embedded in messages from unverified sources. 

The regulator stressed that individuals must never disclose card details, ATM PINs, login credentials, or one-time verification passwords to third parties.

The watchdog also advised consumers against following unverified instructions to confirm transactions or approve authorization requests sent via banking applications or SMS messages. 

Cardholders should scrutinize all official bank notifications and promptly reject any card-binding request that they did not initiate themselves.

Individuals who suspect their cards have been compromised or believe they have fallen victim to fraud are advised to contact their financial institutions immediately, report the incident to law enforcement, or seek assistance through the police anti-scam helpline.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓