HSBC to make credit cards more secure

Himo Liu

HSBC credit card users will soon be able to fully disable or set their own spending limits for online transactions to safeguard themselves against rising fraud.

And one-time passwords may no longer be sent via short message service but to HSBC's online banking app for added safety.

The enhanced security measures are being implemented in response to a surge in online fraud cases post-pandemic, the Hong Kong and Shanghai Banking Corporation said.

They are expected to be rolled out in the coming months.

Customers will be able to choose whether to disable cardless transactions.

Furthermore, to prevent fraudsters stealing OTPs sent via SMS, HSBC is looking at using its mobile banking app as an alternative to deliver them.

HSBC said the new measures are in response to the rising number of fraud cases and is not indicative of any inherent vulnerabilities in its credit card payment systems.

Further details regarding the implementation will be announced at a later date.

In the first half of this year, the number of fraud cases in Hong Kong increased by over 50 percent compared to the previous year, with over 75 percent of them being online scams, resulting in a total loss of HK$2.69 billion.

HSBC said that among the fraud cases reported by local customers in the first nine months of this year, 45 percent were related to shopping and 21 percent to investments.

To enhance customer protection, HSBC locally increased its investment in anti-fraud technology by 70 percent compared to the previous year.

HSBC Hong Kong chief executive Luanne Lim said the increasing severity of online fraud makes it an urgent priority to ensure customers can continue to use digital banking securely.

In addition, HSBC will open an anti-fraud art exhibition at the Airside shopping mall in Kai Tak tomorrow.

The bank-curated exhibition, which is said to be the first of its kind, runs until December 11 and aims to raise public awareness about fraud prevention.