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.