Hong Kong banks are ‘better-than-expected’ at owning up to beat cyber fraud, survey finds

Banks in Hong Kong are doing a better job than expected at taking full responsibility and reimbursing lost funds after fraud events related to online banking or financial apps, according to a survey by financial technology company FIS.

Some 53 per cent of the respondents said their banks assumed full responsibility and reimbursed all the funds they lost in instances of fraud, such as unauthorised access to accounts or theft of personal and financial information. That was a pleasant surprise, as only 44 per cent expected banks to be fully responsible regardless of the reason for the fraud, FIS said.

More than a third said partial responsibility and refunds took place, while about a tenth did not receive any funds as their banks accepted zero responsibility for the fraud.

Banks have stepped up and addressed the underlying fraud and scam risks as they have grown to understand the issue and appreciate the integrity of the relationships they have with clients, said Kanv Pandit, head of corporates and international banking at FIS.

“The banking industry has a more mature and well-understood view of what is driving scam and fraud losses, and [the] individuals who have been impacted,” he added. “The collective industry understands now much better versus even 24 months back.”