Hong Kong watchdog to tighten cybersecurity at brokers after hackers steal HK$110m over 18 months

The Securities and Futures Commission will tighten cybersecurity requirements for Hong Kong stockbrokers after 20 hacking attacks over the past 18 months led to investor losses totalling HK$110 million (US$14.2 million), the regulator said on Wednesday.

As well as tightening cybersecurity, the market watchdog will also introduce measures to make it easier for foreigners and mainland Chinese clients to open accounts with Hong Kong brokers as part of the commission’s efforts to promote fintech in the city.

On Tuesday Hong Kong lawmakers criticised the SFC and the Insurance Authority for not doing enough to promote fintech, or the use of the latest technology by financial firms to provide cheaper and better services to customers.

However, the SFC pushed back on Wednesday, saying it had done a lot to promote fintech.

Among its initiatives was the plan to upgrade cybersecurity. This quarter the SFC will launch a market consultation on a plan to require brokers to upgrade their cybersecurity systems, which it estimates will cost from scores of thousands of dollars up to HK$1 million, depending on the size of the broker, according to an SFC spokesman at a media briefing on Wednesday.

“We have to require all [brokers] to invest more to enhance their cyber security of their computer systems after customers lost up to HK$110 million from hacker attacks. The police have been investigating these cases,” he said. “The upgrade may cost money but it will ensure investors can trade safely when using their computers or mobile phones.”