HKMA Warns Of 400 Cases Of Unauthorized Card Binding To Mobile Payments

The Hong Kong Monetary Authority said it has received bank reports involving fraud cases in which payment cards, including ATM cards, were bound without authorization to contactless mobile payment services. The HKMA has shared details of the scam with the banking sector and urged banks to stay alert and strengthen customer education, according to ETNet. Based on preliminary figures, major retail banks have recently identified about 400 cases targeting the binding of payment cards to contactless mobile payment services. The HKMA said banks already use different forms of two-factor or additional authentication, such as biometric verification and confirmation through mobile banking apps, but many customers still click unknown links and disclose card and identity-verification details to fraudsters. In these cases, scammers used phishing messages, fake websites or phone calls to impersonate merchants or other institutions and lured victims with various pretexts, including compensation for goods, to obtain payment card details and ATM PINs. They then induced victims to approve card-binding requests through channels such as mobile banking apps or two-way SMS. Once the card is bound, the fraudster can use it for unauthorized transactions. The HKMA again warned the public not to click unknown links or provide sensitive banking information to anyone.