**************************************************

Hongkong Post is encouraging people to use e-Cert as "two-factor authentication" in secure e-banking. The move by Hongkong Post comes in conjunction with 12 banks and financial institutions in Hong Kong starting to roll out "two-factor authentication" in e-banking transactions this month to meet the new requirements set out by the Hong Kong Monetary Authority (HKMA).

Two-factor authentication strengthens the security of e-banking by offering stronger online identity authentication. Hongkong Post e-Cert embedded on smart ID card is a readily available two-factor authentication tool.  It uses a combination of two different factors to verify a user's identity.  The first factor is "something the user knows", the e-Cert password, and the second factor is "something the user physically possess", the e-Cert embedded smart ID card. The e-Cert password (first factor) is used to generate a digital signature for identity verification and the password does not need to be transmitted over the Internet. The e-Cert embedded smart ID card (second factor) is physically held by the user and cannot be stolen by the fraudster over the Internet. Therefore, the identity of e-banking user can be securely protected against theft and fraud over the Internet.

Through the program of one-year free e-Cert offer with smart ID card, so far more than 950,000 local residents have already embedded Hongkong Post e-Certs in their smart ID cards. e-Cert on smart ID card has become the most widely recognised and readily available two-factor authentication tool owned by consumers in the market. Business sectors can also develop new secure e-business applications riding on this broad infra-structure of e-Cert holders.

Hongkong Post has been actively promoting the e-Cert to the business sector and to the public. Recognising the importance of two-factor authentication as a crucial platform for secure e-banking transactions, one major promotion target for Hongkong Post e-Cert has been the banking sector.

"We have been working closely with banks to ensure a reliable and cost-effective solution that meets the new HKMA mandate of using two-factor authentication in e-banking,"  Postmaster General Mr Allan Chiang said. "The Hongkong Post e-Cert has already been widely applied in corporate e-banking, and now, banks are extending its use to provide the same authentication to the general public.

"The critical mass of e-Cert embedded smart ID card holders has created a broad base in the market that will facilitate the extension of two-factor authentication to personal e-banking. We are confident that e-Cert as a multi-application authentication tool in electronic services will offer added convenience to consumers using e-banking services," Mr Chiang said.

Government Chief Information Officer of the Commerce, Industry and Technology Bureau (CITB) Mr Howard Dickson  congratulated Hongkong Post for creating a broad secure infrastructure that drove forward new e-government and e-business application development in Hong Kong. "One of the objectives of the Government in building a critical mass of e-Cert holders is to encourage the business sector to develop new applications and services using e-Cert as a platform for secure electronic transactions," Mr Dickson said.  "My colleagues and I are delighted to see that the PKI and e-Cert will be playing an important role in supporting e-banking development in Hong Kong.  And we look forward to seeing more commercial e-Cert applications launched in the near future."

Executive Director, Banking Supervision, HKMA, Mr Arthur Yuen said two-factor authentication was effective in protecting bank customers from Internet banking frauds.  He said Hongkong Post e-Cert as a two-factor authentication method would further strengthen the Internet banking security in Hong Kong.  "I am confident that e-Cert will bring significant benefits and better protection to the public.  With the joint efforts of the banking sector, bank customers, Hongkong Post and the HKMA, we can preserve a safe and sound environment for the further development of Internet banking in Hong Kong."

The banking sector has adopted e-Cert as two-factor authentication in e-banking since 2000.   In view of the large number of e-Cert embedded smart ID cards issued, e-Cert has become a very convenient, reliable and cost-effective option for two-factor authentication. (For the list of e-Cert partner banks and their comments on e-Cert, please refer to Appendix I.)

From June to September, 2005, Hongkong Post and the e-Cert partner banks will jointly launch a series of usage promotion campaigns, offering gifts such as free smart card readers and cash coupons as a reward to selected e-banking customers using the e-Cert as two-factor authentication.

To obtain more information about Hongkong Post e-Cert services, please visit our website at http://www.hongkongpost.gov.hk.

Ends/Thursday, June 23, 2005
Issued at HKT 17:39

NNNN