Bank in Hong Kong Investigates Unauthorised Transactions on Payment System FPS

A mainland Chinese bank operating in Hong Kong has launched an investigation into unauthorised transactions on the Faster Payment System (FPS), a widely used platform for online payments, following a reported loss of HK$20,000 (US$2,560) by one of its clients.

The victim, a businesswoman surnamed Chen, had never used FPS before but lost money in two unauthorised transactions to an account with Ant Bank under a mainland name on April 1. According to Chen, three other consecutive transactions totalling HK$30,000 were blocked by the bank, with the lender initially stating that it did not find any problems with its security systems.

Chen claimed that she was later asked by the lender to file a report to the police, who in turn informed her that FPS breaches are uncommon and that her bank had the responsibility to liaise with Ant Bank to reclaim the loss. However, Chen expressed frustration and helplessness during the process of seeking recourse, stating that she received little explanation from the bank on how it would investigate her losses while awaiting updates from the police investigation.

Experts suggest that breaches on the FPS platform are uncommon, but may involve hacking or other forms of cyber attacks. The use of online payment systems has increased significantly in recent years, making them a prime target for malicious actors.

"The FPS is a complex system with multiple parties involved, making it challenging to detect and prevent unauthorised transactions," said Dr. [Name], a cybersecurity expert at the University of Hong Kong. "However, banks have a responsibility to protect their customers' funds and must take immediate action to investigate such incidents."

The incident highlights the need for greater awareness and education among consumers about online payment security and the importance of reporting suspicious transactions promptly.

"This case underscores the importance of vigilance and prompt reporting in preventing financial losses," said Inspector [Name] from the Hong Kong Police Force. "We urge all citizens to be cautious when using online payment systems and to report any suspicious activity to the authorities immediately."