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What you need to know about cybercrime in Hong Kong
If you are a business owner, now is the time to start building your organisation’s resilience against cybercrime. This umbrella term covers a plethora of digital, often anonymous criminal activities, which target individuals and businesses alike on a global scale.
Typical examples of cybercrime include the more-well-known phishing scams, such as emails claiming to offer a vast sum of money for a small fee, ransomware attacks and malware, as well as theft of corporate data – either by an external party or a “rogue insider” within the organisation. And if such an attack is successful, whether against a business or an individual, the losses incurred can be catastrophic.
Recent headlines paint a startling picture: “Cybercriminals stole $6.9 billion in 2021 using social engineering to break into remote workplaces”, according to Forbes. “UK water supplier hit by ‘extremely concerning’ cyberattacks”, reports Bloomberg. And much closer to home, the SCMP writes how “Hong Kong NFT project Monkey Kingdom loses US$1.3 million in hack, exposing security concerns”.
In Hong Kong, potential cyber threats loom large over businesses of all sizes, as well as for individuals and even our government. According to the latest available data from Statista, cases of “computer crime” in Hong Kong have jumped considerably, from just 1,643 in 2010 to 12,916 a decade later. In the same year, 2020, Hong Kong businesses lost HK$2.96 billion to cybercrime. As our city continues to embrace digital transformation at typically breakneck speed, this threat will only increase in tandem.
Our institutions have been swift to move against cybercrime, with Hong Kong’s Law Reform Commission proposing the creation of five new cybercrime offences, which include penalties of up to 14 years’ imprisonment. While this will come as welcome news for many, there are certain protocols businesses can start following immediately to add extra layers of security and protect their digital assets from scammers, hackers and other cybercriminals.
Some of the more general practices that should be adopted by business include setting up utilising multifactor authentication (MFA) as added to layer of protection to system access hardening firewalls or encrypting important information as a way of securing networks and databases. A further step might be to consider storing company data on a cloud-based system and leveraging the security controls of these larger corporation. Other measures include setting clear guidelines for employees so they understand what is and isn’t acceptable around the use of company equipment and other resources. Similarly, educating your staff about the threats posed by cybercrime is an effective way to safeguard your business interests as well as their own personal wellbeing.
One area that should not be overlooked is having adequate financial protection against cyberattacks. Cyber Insurance plans that offer coverage for business interruptions, remediation costs and cyber fraud cover are increasing in popularity among businesses as the threat of cybercrime continues to grow, both in scale and complexity. In the event your organisation is targeted, having appropriate cyber insurance can help cushion the long-term effects of significant financial loss.
For example, a number of cyberattacks involve huge breaches of customer or employee data, which can result in large claims made against your organisation. As such, you can expect cyber insurance to offer third-party cover, which will protect you against claims for compensation and, defence costs. Comprehensive cyber plans even go a step further and provide crisis management services and legal advisory to protect your organisation’s reputation if such a scenario arises, which helps you get back on-side with customers, employees, the general public and other stakeholders as quickly as possible.
Critically, businesses in Hong Kong, whether multinationals or SMEs, should remain alert to the ever-changing nature of cybercrime. Consult, read widely and keep up to date with the latest developments. And above all, don’t find yourself in the headlines for all the wrong reasons.
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