Business
Hong Kong Central Bank Responds to Rising Scam Complaints with New Loss-Sharing Framework
The central bank of Hong Kong is set to roll out a scheme addressing fraud-related financial losses. The city's financial watchdog has seen an uptick in scam-related grievances this year, with total losses escalating.
The structure will focus solely on scams, which are deceptive tactics used to trick individuals into revealing personal details that result in unauthorized loss of funds. It won't cover financial fraud, which pertains to unauthorized access to personal data through methods like hacking.
HKMA's Deputy CEO, Arthur Yuen Kwok-hang, suggested on Friday that there are certain fundamental guidelines that could be applied when banks are determining whether to reimburse a loss. He noted that these principles might encompass considerations such as whether banks have robust control systems in place, and whether their clients have been diligent in protecting their personal data.
In making that choice, it would also be apt to take into account unique situations, like if their clients belong to a susceptible group, stated Yuen during the yearly meeting of the Hong Kong Institute of Bankers. The objective is to distinctly convey the guiding rules concerning such incidents, he explained.
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