Following is a question by the Hon Jimmy Ng and a written reply by the Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, in the Legislative Council today (January 15): &n… read more
Following is a question by Prof the Hon Chow Man-kong and a written reply by the Secretary for Security, Mr Tang Ping-keung, in the Legislative Council today (January 15):
Question:
It has been reported that the transmission of fraudulent messages (phishing SMS) through telecommunications networks has become increasingly rampant in recent years. Some members of the public even received phishing SMS messages sent by fake government departments, and were lured by fraudsters to access fraudulent websites and consequently suffered pecuniary losses. There are views that the incidents reflect that it is necessary for the Government to build an additional barrier to minimise the chances of members of the public being defrauded and to safeguard the image of government departments. In this connection, will the Government inform this Council:
(1) of the total number of fraud cases received by the Police involving phishing SMS in the past two years (including the number of cases involving fake government departments and its percentage), the age distribution of the victims and the loss incurred, together with a breakdown by police region;
(2) whether the Police have stepped up law enforcement actions against phishing SMS in the past two years; if so, of the details (including the number of fraudsters arrested in each of the law enforcement actions, the age distribution of the arrested persons, the modus operandi of the criminals, as well as their trials, convictions and sentences); if not, the reasons for that;
(3) whether the authorities have assessed or compiled statistics on the effectiveness of “Scameter” and “Scameter+” in combating frauds in the past two years, such as the total number of enquiries and reports recorded by such devices, and the number of Call Alert and Website Detection notifications issued to members of the public by “Scameter+”; and
(4) given that there are views that even though the SMS Sender Registration Scheme has built the first barrier for fraud prevention, the chances of members of the public being defrauded will increase significantly when fraudsters have successfully breached this barrier (i.e. members of the public have failed to realise in time the emergence of phishing SMS and mistakenly accessed fraudulent websites), whether the authorities have considered enhancing the functions of “Scameter” or “Scameter+”, such as co-operating with various web browser developers or antivirus software developers to share information on suspicious websites, so that when members of the public access (especially through their computers) such suspicious websites, their browsers or antivirus software can immediately block them, thus building a second barrier to prevent more people from being defrauded; if so, of the details; if not, the reasons for that?
Reply:
President,
Fraud cases have become increasingly serious in recent years and the Government is very concerned about the situation. Phishing scams mentioned in the question generally refers to a crime where illegal elements sent out through SMS messages, emails, voice messages, QR codes, etc. to potential victims en masse, impersonating organisations such as telecommunication service providers, retail chains with membership reward schemes, online payment service providers or even government departments. Alleging that irregularities in the recipients’ accounts are detected, bonus points for gift redemption are due to expire or account verification is needed, criminals lure recipients of the messages into clicking on an embedded link and entering a fake website to provide their account login credentials, credit card information, personal information, etc. The criminals will then use such information to make purchases with credit cards or transfer the bonus points out of the recipients’ accounts. The Hong Kong Police Force has been making every effort to combat various types of fraud cases, including phishing scams, through intelligence-led enforcement actions and enhancement of public awareness.
　　The reply to the Member’s question is as follows:
(1) In 2023, the Police received a total of 4 322 phishing scams reports, involving a monetary loss of 102.4 million Hong Kong dollars. Between January and November 2024, the Police received a total of 2 580 phishing scams reports, a decrease of 1 488 cases (a decrease of 36.6 per cent) when compared with the number in the same period in 2023 (4 068 cases). The monetary loss was 49.6 million Hong Kong dollars, representing a decrease of 48.1 million Hong Kong dollars (a decrease of 49.2 per cent) from the amount in the same period in 2023 (97.7 million Hong Kong dollars). The Government does not maintain statistical breakdowns of other information about phishing SMS-related scams as mentioned in the question.
(2) The Police have been actively combatting phishing scams with an intelligence-led approach. In 2023 and 2024, a total of five large-scale law enforcement operations were carried out. As most of the fraud syndicates were located outside Hong Kong, these operations include joint arrest operations in collaboration with law enforcement agencies on the Mainland. During the operations, the Police smashed a number of fraud syndicates involved in over 900 cases, with a total of 54 persons arrested in Hong Kong and the Mainland (49 were arrested in Hong Kong). In some cases, criminal syndicates made use of false identity documents to register pre-paid phone cards and impersonated customer service staff. The criminals sent SMS messages with embedded links of phishing sites to victims, alleging that the victims’ membership points would soon expire, so as to lure them into providing their information. Arrested persons were suspected to have committed offences of conspiracy to defraud, using a false instrument and money laundering, with the amounts involved exceeding 68.86 million Hong Kong dollars. Hundreds of thousands of phone cards and related computer equipment suspected to be used by the fraudsters in perpetrating the frauds were also seized in the operations.
(3) “Scameter” has yielded remarkable results since its launch in September 2022. As at November 2024, more than 6.48 million searches have been recorded and about 830 000 alerts on frauds and cyber security risks have been issued. Members of the public have also reported over 310 000 suspicious phone calls and over 32 000 suspicious websites through the public intelligence platform of “Scameter”.
(4) The Police launched a one-stop scam and pitfall search engine, “Scameter”, in September 2022, and its mobile application version, “Scameter+”, in February the following year to help members of the public distinguish suspicious online platform accounts, payment accounts, telephone numbers, email addresses, websites, etc., and to provide anti-fraud tips. “Scameter” has undergone various upgrades and expansion of its functions since its launch. “Scameter+” is now equipped with blocking functions. The call alert and website detection functions in the application will automatically identify scam calls and fraudulent websites. If a potential scam or cyber security risk is detected, it will issue a real-time notification, reminding users not to answer the call or browse the website. There is also a public intelligence platform in “Scameter” for members of the public to report scams and pitfalls, thereby further enriching its database.
Furthermore, the Police will pass to telecommunications service providers the information in the database concerning telephone numbers and websites suspected to be involved in fraud cases. Based on the fraud records and information provided by the Police, the telecommunications services providers will block or suspend the services of such telephone numbers, and block users from accessing suspicious fraudulent websites. As at end November 2024, upon the Police’s request, telecommunications service providers have successfully intercepted around 25 100 website links involved in fraud cases and blocked or suspended over 8 000 local telephone numbers suspected to be involved in fraud cases.
In addition, the Police work closely with the banking industry and make effective use of the information available from “Scameter”. The Suspicious Account Alert mechanism was introduced in November 2023, with the first phase covering transactions via the Faster Payment System. The alert mechanism was further expanded in the second and third phases, which were launched in August and December 2024 respectively, to cover internet banking, physical branch transactions and automated teller machines (including cash deposit machines), hence offering a more comprehensive protection to the public. Before a transaction is confirmed, the mechanism will issue an alert to remind the customer of the associated fraud risk.
The Police will continuously review and enhance the functions of “Scameter”, and are planning to explore the room for co-operation with developers of webpage/browser and anti-virus software, with a view to strengthening anti-fraud measures in a proactive manner. read more
Following is the speech by the Financial Secretary, Mr Paul Chan, at the Asia Private Equity Forum (APEF) 2025 today (January 15):
Rebecca (Chairwoman of the Hong Kong Venture Capital and Private Equity Association, Ms Rebecca Xu), Eric (Co-Chairman of the APEF 2025 Organising Committee, Mr Eric Mason) , Kent (Co-Chairman of the APEF 2025 Organising Committee, Mr Kent Chen), distinguished guests, ladies and gentlemen,
Good morning. It gives me great pleasure to address you today, for the eighth year in a row, at the Asia Private Equity Forum, annually presented by the Hong Kong Venture Capital and Private Equity Association. And my thanks to the Association for giving me this welcome opportunity to speak to you today.
Hong Kong’s Comeback
It was just yesterday that the 18th Asian Financial Forum (AFF) came to a fruitful close here, attended by about 3 600 professionals from some 50 countries and regions. The success of the AFF, and high-profile events like today’s Private Equity Forum, underlines Hong Kong’s longstanding status as an international financial centre. For those of you here from abroad, a warm welcome to Asia’s world city.
At last year’s Private Equity Forum, I outlined the encouraging developments of our financial markets. One year on, Hong Kong’s progress continues.
Hong Kong has regained the position of Asia’s top financial centre, and among the world’s top three along with New York and London. We are once again ranked the freest economy in the world, and among the top five in global competitiveness.
Bank deposits this past year rose some six per cent, or around US$130 billion. By the end of 2024, our stock market’s capitalisation stood at US$4.5 trillion, rising by 14 per cent year on year. In 2024, we handled substantially more big-ticket IPOs (initial public offerings), with some US$11 billion raised, contributing to our return to the fourth place in the global IPO market. Indeed, there are another 100 companies in Hong Kong’s IPO queue today. Many in the market forecast that we will do even better this year. With more quality issuers and staunch support of the central authorities, we are confident that the liquidity of our stock market will be enhanced.
Indeed, last April, the China Securities and Regulatory Commission announced five measures to strengthen co-operation between the capital markets of Hong Kong and the Mainland.
They included strengthening mutual-market access, and encouraging more leading Mainland enterprises to list on the Hong Kong Stock Exchange.
Just two days ago, the People’s Bank of China (PBoC) announced additional measures to support Hong Kong’s development as an international financial centre. In particular, Governor Pan Gongsheng indicated that the PBoC will increase the asset allocation of the country’s foreign reserves in Hong Kong. And the Mainland will work with us to strengthen financial connectivity, such as introducing RMB trade financing liquidity facility, enhancing the Southbound Bond Connect, facilitating the linkage of cross-boundary payment systems, and more.
Investment environment in 2025
Looking into the investment environment in 2025, there will be both challenges and opportunities. Higher for longer interest rates, geopolitical tensions, regional conflicts and climate change will pose more uncertainty and volatility to the financial markets.
But there are also ample room and opportunities for growth.
China’s economy is expected to achieve a steady growth between four per cent and five per cent this year. In pursuit of high-quality development, our country is embarking on a development model that integrates exports, infrastructure development and private consumption. It is firmly committed to green transformation, innovation, reform and high-level two-way opening up. This will continue to drive the sustainable growth of its economy.
Emerging economies in the Global South like the Middle East and ASEAN (Association of Southeast Asian Nations) are experiencing rapid growth. With youthful populations, ambitious infrastructure development plans, expanding middle classes and growing consumer markets, these regions will be new sources of capital and present boundless investment opportunities.
Private equity under spotlight
Turning to private equity, I’m pleased to report that our private equity and venture capital sector remains strong and steady. In September last year, capital under management in private equity reached more than US$230 billion, growing some five per cent compared to the end of 2023. Hong Kong continues to rank second in Asia, behind only the Mainland.
The Government is committed to creating fresh momentum for the private equity sector.
In my Budget last year, I announced plans to enhance the preferential tax regimes for privately offered funds, equities and single-family offices. To this end, we’ve just completed an industry consultation. Measures proposed include expanding the definition of “fund” to cover pension funds and endowment funds, enlarging the scope of qualifying transactions for tax exemptions, and more.
And I’m pleased to note that the industry, including your Association, has provided valuable suggestions.
We are also striving to boost the liquidity for the private equity sector. In the Chief Executive’s Policy Address in 2024, we announced initiatives to facilitate private equity funds to list on the Hong Kong Stock Exchange. We encourage eligible funds that invest in alternative assets to take advantage of this opportunity. To support this, our Securities and Futures Commission has been collaborating with the Hong Kong Stock Exchange, industry associations and interested fund managers to clarify the relevant rules and arrangements.
From a broader perspective, as we strengthen our connectivity with the capital markets in the Mainland and engage with emerging markets such as the Middle East and ASEAN, new sources of capital will be attracted to the private equity sector.
Over the years, we have implemented initiatives to facilitate Mandatory Provident Fund (MPF) investments into various asset classes, including sovereign bonds, Hong Kong Government bonds and A-shares. With a robust financial industry, we will continue to seek opportunities to diversify permissible investments within the MPF System, including private equity. Our objective is to enable fund managers to achieve better risk-adjusted returns for scheme members, while creating new opportunities for the sector.
Then, the Hong Kong Monetary Authority, HKMA, and the Hong Kong Investment Corporation Limited, HKIC, continue to engage private equity firms of different scales in their investment mandates. For instance, HKMA, under my instructions, has already set up a fund-of-funds mandate targeting general partners that raise smaller funds or have smaller assets under management. It came into operation last year. On the other hand, in December, HKIC announced the appointment of fund managers for the Investment Portfolio of the New Capital Investment Entrant Scheme. They include a number of home-grown managers.
These efforts are complemented by our initiatives to develop the asset and wealth-management sector and welcome more wealthy individuals to the city. That includes family offices. The number of family offices in Hong Kong now stands at more than 2 700, with half of them managing assets over US$50 million. Moreover, our Capital Investment Entrant Scheme has garnered over 800 applications in ten months since its launch in March last year, potentially bringing around US$3 billion in investments to Hong Kong. We believe these initiatives will create new businesses for the private equity sector.
Concluding remarks
Ladies and gentlemen, we know that 2025 will be marked by challenges and heightened uncertainty. But this is also a year flush with promise. All in all, we will navigate complexities with caution, confidence and optimism. Thanks to our country’s unwavering support and Hong Kong’s strong fundamentals and wide-ranging initiatives to scale our financial markets, I am confident we will continue to realise far-reaching opportunities for us all.
Two weeks from today, we welcome in the Year of the Snake, with its promise of renewal and transformation. I wish you a rewarding Forum and the best of business, investment and health in the New Year. Thank you.
Special traffic arrangements will be implemented in Happy Valley today (January 15). The arrangements will last until the crowds have dispersed after the race meeting.
A. Traffic arrangements before the commencement of the first race
The following road closure and traffic diversions will be implemented from 50 minutes before the start of the first race for day racing, or from 6pm onwards for night racing:
1. Road closure
Southbound Wong Nai Chung Road between Queen’s Road East and the up-ramp outside the Hong Kong Jockey Club (HKJC) will be closed, except for vehicles heading for Aberdeen Tunnel.
2. Traffic diversions
– Southbound Wong Nai Chung Road between Village Road and the up-ramp outside the HKJC will be re-routed one way northbound;
– Traffic along eastbound Queen’s Road East heading for Wan Chai and Happy Valley will be diverted to turn left to Morrison Hill Road;
– Traffic along southbound Morrison Hill Road heading for Happy Valley will be diverted via Sports Road and Wong Nai Chung Road;
– Traffic along Queen’s Road East cannot turn right to Wong Nai Chung Road, except for vehicles heading for Aberdeen Tunnel;
– Traffic from Cross Harbour Tunnel heading for Queen’s Road East will be diverted via the down-ramp leading from southbound Canal Road flyover to Morrison Hill Road to turn right at the junction of Wong Nai Chung Road and Queen’s Road East; and
– Traffic from Cross Harbour Tunnel heading for Happy Valley or Racecourse will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, southbound Morrison Hill Road, Sports Road and Wong Nai Chung Road.
B. Traffic arrangements before the conclusion of race meeting
The following road closure and traffic diversions will be implemented from about 35 minutes before the start of the last race:
1. Road closure
– The up-ramp on Wong Nai Chung Road outside the HKJC leading to Aberdeen Tunnel;
– Southbound Wong Nai Chung Road between Queen’s Road East and the up-ramp leading to Aberdeen Tunnel;
– Southbound Wong Nai Chung Road between Village Road and the Public Stands of the HKJC;
– Westbound Leighton Road between Wong Nai Chung Road and Canal Road East; and
– Southbound Morrison Hill Road between Leighton Road and Queen’s Road East.
In addition, southbound Wong Nai Chung Road between the up-ramp leading to Aberdeen Tunnel and the Public Stands of the HKJC will be closed from about 10 minutes before the start of the last race.
2. Traffic diversions
– Eastbound Queen’s Road East at its junction with Morrison Hill Road will be reduced to one-lane traffic heading for northbound Canal Road flyover;
– Traffic from Cross Harbour Tunnel heading for Wan Chai will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, U-turn slip road beneath Canal Road flyover, Canal Road West and Hennessy Road;
– Traffic from Cross Harbour Tunnel heading for Happy Valley will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, eastbound Leighton Road and Wong Nai Chung Road;
– Traffic along southbound Morrison Hill Road will be diverted to turn left to eastbound Leighton Road;
– Traffic along southbound Morrison Hill Road heading for Happy Valley will be diverted via eastbound Leighton Road and Wong Nai Chung Road; and
– Traffic along westbound Leighton Road will be diverted to Wong Nai Chung Road.
C. Learner drivers prohibition
Learner drivers will be prohibited to turn left from Caroline Hill Road to Leighton Road between one and a half hours before the start of the first race and one hour after the last race. In addition, learner drivers will be prohibited from accessing the following roads within the above period of time:
– Shan Kwong Road between Yik Yam Street and Wong Nai Chung Road;
– Village Road between its upper and lower junctions with Shan Kwong Road;
– Percival Street between Hennessy Road and Leighton Road;
– Canal Road East; and
– The service road leading from Gloucester Road to Canal Road flyover.
D. Suspension of parking spaces
Parking spaces on southbound Wong Nai Chung Road between Sports Road and Blue Pool Road will be suspended from 11am to 7pm for day racing, and from 5pm to 11.59pm for night racing respectively.
All vehicles parked illegally during the implementation of the above special traffic arrangements will be towed away without prior warning, and may be subject to multiple ticketing.
Actual implementation of road closure and traffic diversion will be made by the Police at the time depending on traffic conditions in the areas. Motorists should exercise tolerance and patience, and follow the instructions of Police on site. read more
Attention duty announcers, radio and TV stations:
The fire danger situation today (January 15) is red and fire risk is extreme. The countryside is extremely vulnerable to fire. If you are planning to spend the day in the countryside, please take pre-cooked food for a picnic and take all measures to prevent hill fires. The penalty for lighting fires illegally in the countryside is $25,000 and a year’s imprisonment. read more