Step up fight against Hong Kong online scam scourge
Phone scams have steadily increased, with losses nearly doubling in value last year in the city to HK$9.18 billion
It was only a matter of time before the supersize scourge of online scams tapped into mainland Chinese super apps. Warnings about fraudsters posing as customer service staff from such companies must be heeded in Hong Kong.
Police said nearly HK$585 million (US$75 million) was stolen in the first seven months of 2024. One victim lost HK$4.5 million.
Among the more than 2,700 cases of customer service fraud reported, about half involved scammers pretending to work for the messaging platform WeChat and e-commerce giant Taobao. China Mobile was also used to dupe customers.
Many victims were told they were signed up for insurance policies or other services, then pushed to quickly act to “cancel” the bogus orders by providing bank details and paying “earnest money”. Investigators said some victims had never even used the platforms cited.
It is encouraging that between January and June, police arrested more than 100 people in connection with such scams. The force’s Commercial Crime Bureau also has met with app companies and has collaborated with government departments, banks and other sectors.
However, phone scams overall have steadily kept increasing, with losses nearly doubling in value last year in Hong Kong to HK$9.18 billion. The number of cases jumped nearly 43 per cent to 39,824.
A growing number of mainland Chinese students are among the victims as the city has found itself on top of a global list for per-capita losses to fraud.
Individuals must, of course, become more wary. But banking and financial regulators face criticism for failing to stay ahead of advancing schemes and ploys. Some lawmakers have admitted the city lags behind when it comes to scam-fighting legislation.
Efforts being made in other jurisdictions are worth considering. Australia is poised to require banks, digital communications platforms and telecoms providers to assume anti-scam responsibilities.
Singapore’s monetary authority plans a “shared responsibility” framework where phishing scam losses are borne by banks and telecoms.
Online scammers show no sign of slowing down. The city must pick up the pace and do what it takes to fight back.
