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Hong Kong has to bank on better ATM security

Hong Kong has to bank on better ATM security

CENTRAL: A surge estimated at HK$20 billion a month in suspicious ATM withdrawals in Hong Kong is attributed to a crackdown on money laundering in Macau. Authorities in the gambling city drove out organised ATM withdrawal gangs by upgrading security. The operations have apparently stayed in business simply by moving into Hong Kong. The ease with which they did this without being troubled by the outdated security of Hong Kong banks rings alarm bells. Hong Kong’s reputation as a financial centre. More up-to-date technology and tighter regulation are urgently needed steps towards addressing the problem. The mainland, for example, has begun to experiment with facial recognition technology. It is the installation of facial recognition technology across Macau’s ATM network that prompted the city’s ATM gangs to switch to Hong Kong cash machines. At about the same time, Beijing set strict limits on overseas withdrawals by individuals and banned withdrawals by anyone but the cardholder.

Hong Kong, where the cardholder may authorise the use of multiple bank cards by someone else, who can easily provide proof, was an obvious replacement for Macau. It will continue to be so as long as the government and the Hong Kong Monetary Authority do not require the banks to follow the example of Macau. The monetary authority admits Macau’s facial recognition technology may have had an impact on Hong Kong. It said it would liaise with police and banks should it become necessary to take appropriate measures. One reason for acting sooner rather than later is that ATM withdrawal gangs are easily identified as targets by local criminals, which has led to a couple of big robberies and raises the risk of street mob violence. Another reason is that as a member of both the global Financial Action Task Force and the Asia/Pacific Group on Money Laundering, Hong Kong faces evaluation by both in 2018-19.