Hong Kong banking industry will launch two-factor authentication for Internet banking to protect customers from frauds, announced the Hong Kong Monetary Authority (HKMA) on Monday.
According to the requirement, banks offering high-risk retail Internet banking transactions will have two-factor authentication ready for their clients by June, 2005. Clients will need to adopt the new authentication if they want to conduct transactions through Internet.
The authority said there will be a customer education program to educate people with the significance, benefits and usage of thenew authentication.
William Ryback, the chief executive of HKMA, said the requirement is to strengthen the security controls of Internet banking, protect the customers from frauds and enable Internet banking to flourish under a safe and sound environment.
Internet banking service has developed fast in recent years andis accepted by many residents because of its convenience. The number of Internet banking accounts in Hong Kong reached 2.7 million in 2004.
