HKMA Launches Suspicious Proxy ID Alert for Faster Payment Systemby Fintech News Hong Kong November 28, 2023
The Hong Kong Monetary Authority (HKMA) has rolled out the Suspicious Proxy ID Alert for the Faster Payment System (FPS).
This initiative, launched on 26 November, enhances the system’s security by alerting users to potential fraud risks when conducting transactions using FPS proxy IDs, such as mobile phone numbers, email addresses, or FPS Identifiers (FPS IDs).
This Suspicious Proxy ID Alert development results from a collaborative effort involving the HKMA, the Hong Kong Police Force (HKPF), Hong Kong Interbank Clearing Limited, and various industry players, including banks and Stored Value Facility (SVF) operators.
The alert mechanism utilises data from the HKPF’s Scameter, an anti-fraud search engine, to identify and label high-risk proxy IDs.
Users attempting to transact with a proxy ID marked as “High Risk” on Scameter will receive an alert advising them to reconsider the transaction. This feature is part of a broader strategy to encourage users to verify payment details and the trustworthiness of the payee before each transaction.
The HKMA emphasises the importance of using the latest mobile banking or e-wallet applications, including this new alert feature, to ensure maximum protection against fraud. The updated apps are available in app stores and cover 44 participating banks and SVFs, marking a significant step towards enhancing the security and reliability of the FPS.