Council issues advice to boost consumer confidence in e-banking -
CHOICE # 327 (January 15, 2004)
Consumer
confidence in the safe use of e-banking services may be in jeopardy
of a decline in the wake of a sudden increase in the number of
fraudulent banking websites in recent months.
The
Consumer Council is concerned that more of such fraudulent websites
are likely to surface and consumers should take every possible
sensible precaution to safeguard their assets.
The
Council notes that given the global nature of the internet,
fraudsters are anywhere and may continue to use similar techniques
to defraud unwary consumers.
The
techniques are to replicate web pages or to use similar names of
local banks' websites to trick bank customers into revealing
sensitive account information.
Fake
websites have been known to include a hyperlink to a logon page
which solicits customers to input their banking user ID and
password.
In an
effort to help consumers protect themselves in the use of e-banking
services in Hong Kong, the Consumer Council has put together a
comprehensive report with checklist and advice for consumers to
safeguard their assets.
First, know
whom you are connecting to:
-
To
ensure you are connected to a valid banking website before keying
in any confidential personal data, double click the 'lock' icon at
the bottom of the screen to check the security certificate of the
website.
-
Verify the
status of any entity in Hong Kong which solicits deposits from the
public, with the HKMA or the HKAB. A list of authorized
institutions is available on the websites of HKMA (www.hkma.gov.hk)
and HKAB (www.hkab.org.hk).
Second, take proactive efforts to protect yourself against
potential fraud:
-
Never
disclose your internet banking ID and password to anyone.
-
Avoid
using the same password for different online services, and change
your password regularly.
-
Never
access on-line banking service from public places or from shared
computers.
-
Check
your account balances and statements regularly to identify any
unusual transactions.
-
Install
personal firewall and regularly update anti-virus software to
protect your computer from viruses and hackers.
Third, know
your liability for loss. In
accordance with the Code of Banking Practice, "unless a customer
acts fraudulently or with gross negligence such as failing
to properly safeguard his device(s) or secret code(s) for accessing
the e-banking service, he should not be responsible for any direct
loss suffered by him as a result of unauthorized transactions
conducted through his account".
Consumers
should therefore be on the alert. If they suspect anything unusual
or unauthorised access to their online banking account, they should
report to their bank immediately.
As a precautionary measure to minimise loss, consumers may wish to
consider reducing the limit for internet fund transfer to accounts
which have not been registered beforehand by the account
holder.
