LCQ9: Stepping up efforts to combat fraud
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Question:
According to data from the Hong Kong Police Force, there were 20 760 deception cases in Hong Kong in the first half of this year, representing a 4.3 per cent increase compared to the same period last year, and accounting for about 48 per cent of the overall crime figure. Regarding stepping up efforts to combat fraud, will the Government inform this Council:
(1) of the number of telephone fraud cases reported to the police annually since the implementation of the Real-name Registration Programme for Subscriber Identification Module (SIM) Cards, with a breakdown by whether the SIM cards held by the fraudsters were registered to Hong Kong residents, and the age groups and occupational backgrounds of the victims; the publicity strategies adopted by the authorities to prevent fraud among different groups of people and whether an assessment has been conducted on their effectiveness;
(2) as some members of the industry have pointed out that the frequent occurrence of fraud cases stems from vulnerabilities in the first line of defence where telecommunications operators verify the identities of SIM card users, whether the authorities will study ways to strengthen the relevant identity verification requirements, such as mandating that telecommunications operators must verify original copies of customers' identity documents on the spot before issuing SIM cards, and explore feasible solutions to effectively detect the authenticity of the identity documents used by customers for registration; if so, of the details; if not, the reasons for that;
(3) as the Government indicated at the meeting of the Panel on Information Technology and Broadcasting of this Council on July 14 this year that it intended to amend legislation to combat the improper use of registered SIM cards, of the current progress of the legislative amendment exercise and the legislative timetable;
(4) when carrying out the legislative amendment exercise as mentioned in (3), whether the Government will study setting separate upper limits on the total number of SIM cards that can be registered by Hong Kong residents and visitors, in order to step up the combat against telephone fraud; if so, of the details; if not, the reasons for that;
(5) as it is learnt that places such as the Mainland and Singapore have enacted specific legislation to prohibit activities such as the sale or rental of bank accounts in order to step up the combat against stooge accounts, whether the authorities will make reference to such experiences and study the feasibility of enacting specific legislation; if so, of the details; if not, the reasons for that;
(6) as the Law Reform Commission (LRC) recommended the extra-territorial application of Hong Kong law to certain offences in the Consultation Paper on Cyber-Dependent Crimes and Jurisdictional Issues published in 2022, and in order to combat cross-border crimes more effectively, including the resale of SIM cards to lawbreakers outside Hong Kong, whether the authorities will make reference to LRC's recommendations to incorporate an "extraterritoriality" provision into relevant legislation as appropriate; if so, of the details; if not, what other effective strategies the authorities have in place to address cross-border fraud crimes;
(7) as the Banking (Amendment) Ordinance 2025, which took effect on November 3 this year, introduces a voluntary mechanism for banks to share information of corporate and individual accounts via electronic means with other banks and relevant law enforcement agencies through secure platforms designated by the Hong Kong Monetary Authority (HKMA) when they become aware of suspected prohibited conduct (e.g. money laundering), thereby better protecting the public from fraud, of the details of the secure platform designated by the HKMA (including the current progress of the system's preparation); the number of institutions that have so far confirmed their participation in this mechanism to share account information; and
(8) to effectively assist Hong Kong banks in verifying the identities of Mainland residents and enterprises in Hong Kong and properly carrying out the "Know Your Customer" procedures, so as to prevent individuals from opening accounts and obtaining fraudulent loans in Hong Kong through unlawful means, what is the current progress of implementing Cross Boundary Credit Referencing and the Shenzhen-Hong Kong cross-boundary data validation platform, and whether any performance indicators have been set for these initiatives?
Reply:
President,
Deception is a serious crime. Any person who commits the offence of "fraud" under section 16A of the Theft Ordinance (Cap. 210) is liable to imprisonment for up to 14 years, while any person charged with "obtaining property by deception" under section 17 of the same Ordinance is liable to imprisonment for up to 10 years. In addition, any person charged with "dealing with property known or believed to represent proceeds of indictable offence" under section 25 of the Organized and Serious Crimes Ordinance (Cap. 455) for proceeds of deception is liable to maximum penalties of 14 years' imprisonment and a fine of $5 million.
In consultation with the Commerce and Economic Development Bureau, the Financial Services and the Treasury Bureau and the Office of the Communications Authority (OFCA), the reply to the Member's question is as follows:
(1) The second phrase for the Real-name Registration Programme for Subscriber Identification Module (SIM) Cards (RNR Programme)'s second phase was implemented in 2022, enabling users to start real-name registration of their SIM cards since March 2022. The number of telephone scam cases reported to the Police since 2022 is as follows:
| 2022 | 2023 | 2024 | January to August 2025 | |
| Number of cases | 2 831 | 3 213 | 9 204 | 4 922 |
The age distribution of victims varies across different types of major telephone scam cases. For "impersonation of customer service staff" and "guess who" cases, over half of the victims in the first eight months of 2025 were aged 60 or above, accounting for 54 per cent and 58 per cent respectively.
More than 70 per cent of the calls involved in telephone scam cases in the first eight months of 2025 originated from Hong Kong. The Police do not maintain a breakdown of the statistics on the victims by occupation.
Regarding scam prevention, the Police have been analysing the trends and intelligence of latest scam cases (including telephone scams), and have been releasing the latest anti-scam messages in a timely manner, including making use of platforms such as press conferences, social media accounts of the Police and the CyberDefender website to warn the public about the latest scam tactics. Targeted publicity was also launched for different groups of people.
The Police have introduced an anti-scam mascot "The Little Grape" since 2020 to explain the latest tactics of fraudsters and to disseminate simple, easy-to-understand anti-scam messages in a friendly and interactive manner. Anti-scam information is posted on different social media platforms using "The Little Grape" as the theme, such as "The Little Grape" Animation Picture book. Also, offline interactions between "The Little Grape" and primary and secondary students are arranged through visits to primary and secondary schools by "The Little Grape" and the anti-scam promotional vehicle to convey anti-scam messages.
To heighten the alertness of students and the public against telephone and online scams and pitfalls, the Police have been maintaining close communication and collaboration with telecommunications service providers (TSP) and social media platform operators. In particular, anti-scam promotional leaflets are distributed through TSPs. The promotional materials are updated from time to time, so as to remind members of the public to be watchful over the latest fraud tactics. Should suspected fraudulent content be found, the Police will request the social media platforms concerned to immediately remove the content and take appropriate follow-up actions. From January to August of 2025, the platforms concerned have reviewed and removed over 67 000 items of fraudulent content at the request of the Police.
For the elderly and retirees, the Police deliver anti-scam messages, in particular those on prevention of telephone scams, to these groups under the theme of "live healthily and stay away from scams; good fortune is always around". Specifically, the Police collaborate with health examination centres and Elderly Health Centres of the Department of Health to disseminate anti-scam information, and distribute anti-scam information packs to the elderly with the aid of social welfare organisation networks and the Care Teams. The Police also continue to organise anti-scam activities through the Senior Police Call and other community networks. Among others, the Senior Police Call launched the "IT Captain" training programme in May 2025, the content of which included teaching the elderly how to use the "Scameter+", enabling them to be aware of the latest scam tactics and cyber pitfalls and encouraging them to spread scam prevention messages in the community.
Targeting high-risk groups of telephone scam victims such as new arrivals and Mainland students, the Police have earlier on produced anti-scam video clips in collaboration with the National Immigration Administration, the Criminal Investigation Bureau of the Ministry of Public Security and the Immigration Department (ImmD) of Hong Kong. Starting from June 2025, the videos are broadcast across boundary control points, exit-entry service halls on the Mainland as well as Xiaohongshu, Douyin, etc. In addition, the Police distribute anti-scam booklets and leaflets to new arrivals through the six regional public service counters of the ImmD, the Labour and Welfare Bureau and various tertiary institutions. These materials include methods to prevent telephone scams. The Police have also launched an online learning package for new arrivals, Mainland students, etc, to learn about the scam tactics and advise them on counter measures.
Besides, the Police held a joint press conference with Meta, the parent company of Facebook and WhatsApp, in August 2025 to alert the public of the latest scam tactics involving messaging applications and social networking platforms. The public were also notified of the operators' anti-scam counter measures, which include the strengthened use of artificial intelligence technology for detecting and removing fraudulent content and accounts.
(2) to (4) Since the full implementation of the RNR Programme in February 2023, the OFCA has introduced various enhancement measures based on operational experience, including requiring TSPs to adopt "iAM Smart" as the default registration method for Hong Kong Identity (HKID) card holders since October 2024. For non-HKID holders registering pre-paid SIM cards (PPS cards) under the RNR Programme via an online registration platform, TSPs will first verify the identification documents through their system and then activate the relevant PPS cards, followed by manual checks to verify the authenticity of the identification documents provided. Any PPS cards found to be non-compliant with the regulatory requirements will have their registration cancelled. In addition, all TSPs are required to conduct regular sampling checks on the registered PPS card information, strengthen the verification of suspicious cases and refer suspected illegal cases to the Police for further handling. As at end-August 2025, around 5.2 million PPS cards were rejected for registration as clients failed to provide information in compliance with the registration requirements, and the registration records of about 3.67 million non-compliant PPS cards were deregistered.
The Government is comprehensively reviewing the overall implementation of the RNR Programme. In July 2025, the Government briefed the Legislative Council (LegCo) Panel on Information Technology and Broadcasting on the enhancement proposals, which include significantly reducing the maximum number of registered PPS cards allowed for each individual user (both Hong Kong resident and non-Hong Kong resident) from 10 PPS cards per TSP per person to 3 PPS cards per TSP per person, and introducing new offences to combat improper uses of registered SIM cards. The Government is currently reviewing the feedback collected and actively preparing for the drafting of legislation, with a view to submitting the proposed legislative amendments to the LegCo for scrutiny in 2026.
(5) The Police have taken targeted enforcement actions against stooge accounts frequently used by fraudsters in order to destroy the fraud industry chain. In the first eight months of 2025, a total of 4 906 people were arrested for fraud and money laundering offences, of which about 70 per cent of the arrestees are stooge account holders. The Police have deployed manpower and allocated resources to expedite the handling of cases involving stooge accounts and are working with the Department of Justice to speed up the prosecution process.
Furthermore, since end-2023, the Police have applied to the courts for invocation of section 27 of the Organized and Serious Crimes Ordinance to seek enhanced penalties for cases involving stooge accounts. As at end-August 2025, the sentences of 169 stooge account holders have been enhanced by 10 per cent to more than 30 per cent, with terms of imprisonment ranging from 21 to 75 months. The Police will continue to publicise the cases with successful application for enhanced sentences to further increase the deterrent effect.
The Police have also launched a number of measures with the Hong Kong Monetary Authority (HKMA) and the banking sector to combat money laundering activities by criminal syndicates using stooge accounts. These include the Financial Intelligence Evaluation Sharing Tool (FINEST) launched in June 2023. This electronic platform provides a secure and efficient means for sharing data of corporate clients related to suspected financial crimes among the banking institutions. The Police also organise targeted publicity and education activities for members of the public and various groups in the community. For instance, with the collaboration of the HKMA and the banking sector, desktop display stands and stickers with anti-money laundering messages are placed at counters of retail banks to remind those intending to open bank accounts not to fall into the trap of "renting, lending or selling their accounts". Additionally, a promotional truck was arranged to tour around various districts, distributing publicity materials to members of the public.
Moreover, the HKMA has been closely monitoring the risks of scams and money laundering activities, and has worked closely with the banking industry, law enforcement agencies and other regulators to launch a series of measures to combat scams, specifically targeting stooge account networks that are used by criminals for money laundering. These measures include requiring banks to expand their use of the Police's Scameter database to identify suspicious accounts early and alert customers of the associated risks, amendments to the Banking Ordinance to facilitate information sharing among banks, and issuance of detailed guidelines to banks on good practices for protecting customers and combating stooge accounts. Furthermore, the HKMA has stepped up publicity and education efforts, including issuing social media posts and collaborating with banks and law enforcement agencies to organise a series of outreach activities under the campaign "Don’t Lend/Sell Your Accounts", with a view to raising awareness among members of the public about anti-money laundering and anti-scam.
The Government will continue to make good use of the existing legislations to combat stooge accounts through targeted actions, closely monitor their effectiveness and consider in a timely manner the need to review the existing legislations.
(6) A sub-committee set up under the Law Reform Commission (LRC) completed the first stage of public consultation on cyber-dependent crimes and jurisdictional issues in October 2022. The LRC is now conducting the second stage of the study, focusing on the traditional crime of leveraging computer network to expand the scope of criminal activities. The Government will closely monitor the progress of the LRC's study and the final recommendations made by the LRC.
Meanwhile, the Police have been taking proactive measures in investigation and intelligence gathering in order to combat the offence of fraud. The Police will also strengthen collaboration with other law enforcement agencies and relevant stakeholders to jointly combat criminal syndicates and cross-boundary/transnational criminal organisations involved in fraudulent activities.
Among others, the cross-border anti-fraud collaboration platform "FRONTIER+" was established in October 2024. As of now, the platform comprises a total of 10 countries and regions, namely Australia, Canada, Hong Kong Special Administrative Region, Indonesia, Macao Special Administrative Region, Malaysia, the Maldives, Singapore, South Korea and Thailand, as its members. During the first joint operation in April this year, "FRONTIER+" successfully identified and dismantled multiple cross-border fraud syndicates, resulting in the arrest of a total of 1 858 people, who were involved in more than 9 200 fraud cases and a total loss amounting to over HK$1.5 billion. More than 32 000 bank accounts were frozen and approximately HK$160 million fraudulent funds were intercepted during the operation.
(7) The HKMA intends to facilitate information sharing among banks under the Banking (Amendment) Ordinance 2025 (the Ordinance) through two designated platforms. The main platform is FINEST operated by the Police, which is already in use by 10 banks for sharing information of corporate accounts. FINEST is currently being upgraded to accommodate information sharing on individual accounts and the 10 banks will transition to the new upgraded platform when it is launched. The other platform is ICLNet, an information platform operated by a subsidiary of Hong Kong Interbank Clearing Limited. The intention of the HKMA is to let the aforementioned 10 banks to use ICLNet for sharing information in the initial stage. Currently, FINEST and ICLNet have been widely used by the banking sector and banks are not unfamiliar with using these platforms. The HKMA also plans to gradually increase the number of participating banks in order to enhance the effectiveness of information sharing.
The HKMA is now working closely with the Police and the banking sector to complete the relevant preparatory work, including the system upgrade of FINEST and formulation of relevant guidelines. The objective is to implement the measures as soon as practicable after the Ordinance comes into operation to further enhance banks' ability to combat fraud through wider information sharing.
(8) Cross-boundary Credit Referencing (CBCR)
Following the launch of the pilot programme of the CBCR initiative by the HKMA and the People's Bank of China (PBoC) in 2024, the HKMA has been following up with local banks and credit reference agencies to implement and optimise the testing of end-to-end data transmission workflows for corporate and personal customers, which included the integration of the Shenzhen-Hong Kong cross-boundary data validation platform into the processing workflows in April 2025. So far, Southbound data transfers under the pilot programme have facilitated over 20 corporate and personal loans approval amounting to more than HK$260 million, and the "Know-Your-Customer" (KYC) and account opening processes of over 200 businesses. Following the successful pilot outcomes, the HKMA hosted an industry symposium on October 10, 2025 to announce, among others, the regularisation of the CBCR initiative, with a view to supporting the industry in productising the pilot outcomes into market-driven solutions. Based on market needs and feedback, the HKMA will continue to maintain close liaison with the PBoC and other relevant Mainland authorities to explore possible enhancements to the initiatives to facilitate more efficient and scalable transfer, which will in turn benefit businesses and residents on the Mainland and Hong Kong, and contribute to the real economy.
Shenzhen-Hong Kong cross-boundary data validation platform (DVP)
The DVP utilises advanced technologies such as blockchain to enable banks to validate the authenticity of cross-boundary data presented by their customers in a safe and innovative way. Since pilot launching in May 2024 with the support of the HKMA and relevant mainland authorities, the DVP has already provided services to over 10 banks and credit reference agencies and implemented more than 10 business scenarios, including to support Hong Kong banks to validate documents provided by Mainland residents and enterprises to conduct due diligence and risk management work related to account opening and loan approval in a more effective manner.
To make it more convenient for banks to use the DVP, the HKMA facilitated its connection with the Commercial Data Interchange (CDI) in April this year, allowing banks to more simply and directly access the DVP's services leveraging the existing CDI interface. The HKMA will continue to work with the government, relevant Mainland regulatory authorities and the industry to explore further enhancements and development of the DVP in terms of data types and sources, geographic coverage within the Greater Bay Area and customer experience and user interface, with a view to facilitating Hong Kong banks to provide banking services to Mainland residents and enterprises in Hong Kong while managing the related risks.
Ends/Wednesday, October 15, 2025
Issued at HKT 15:08
Issued at HKT 15:08
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