Technology push could open Hong Kong banks to more cyberattacks in 2019, KPMG says

The advent of virtual banking and the increased use of emerging technology could open Hong Kong’s banks to more risks of cyberattacks in the coming year, according to KPMG.

In a new report, the accounting and consulting firm said that it expects to see more cyberattacks and breach attempts in 2019 as traditional banks increasingly adopt new technology to remain competitive with new financial providers and as hackers and online criminals become more sophisticated.

The report came just days after HSBC was forced to tighten security around its PayMe e-wallet app after 20 accounts were illegally accessed using an email scam.

“Both banks and consumers need to be mindful that we currently may not fully understand all cyber threat scenarios impacting these emerging technologies,” Henry Shek, head of IT advisory risk consulting at KPMG China, said.

“At the same time, cyber criminals are already using new and advanced methods to manipulate security weaknesses,” he said. “This means that the traditional security and protection mechanisms that banks have in place may not be sufficient to deal with [artificial intelligence] and advanced technology-enabled attacks.”

KPMG said that it expects Hong Kong’s banks to rethink their approach to cybersecurity in the coming year.