The Hong Kong Monetary Authority (HKMA) has embarked on an initiative that is set to improve the alert mechanism for Faster Payment System (FPS) users through the introduction of a notification message, designed to flag potential fraud risks before transactions are approved using proxy IDs. This new feature is referred to as the FPS Suspicious Proxy ID Alert.
As per a press release by the HKMA, they have been in collaboration with various entities such as Scameter, an anti-fraud search engine, alongside the Hong Kong Police Force, Hong Kong Interbank Clearing Limited and banks and stored value facility (SVF) operators in order to enhance their alert system.
All FPS participants have adopted this alert mechanism. This includes 44 banks and SVFs which provide real-time fund transfer services to individual users making use of FPS proxy IDs.
Furthermore, this enhancement will enable users to be warned about a high possibility of fraud when they interact with a payee's FPS proxy ID that has been classified as 'High Risk' on Scameter. Upon detection of these high-risk proxy IDs—which include mobile phone numbers, email addresses, and FPS Identifiers—an advisory message will be triggered advising users to reconsider before proceeding with the transaction.
For users to receive these alerts it is necessary that they utilize an updated version of either their mobile banking or e-wallet application which contains this improvement. These updated applications are available via participating institutions.
According to information found on the HKMA website, FPS is utilized as a payment platform by banks and SVF operators. It enables customers to conduct person-to-person transfers along with topping up e-wallets and online shopping.