Hong Kong to tighten cyber security rules after broker hacks | Reuters

Hong Kong to tighten cyber security rules after broker hacks | Reuters

Hong Kong to tighten cyber security rules after broker hacks | Reuters

Hong Kong plans to toughen information security rules after a series of embarrassing hacks at the city’s brokers, the securities regulator said on Thursday.The draft rules would likely include requirements for two-step authentication for account log-in and for brokers to notify clients when a transaction had been made, a Hong Kong Securities and Futures Commission (SFC) spokesman said.The SFC would publish a consultation on the draft rules during the second quarter.The rule changes would be made to the SFC Code of Conduct, meaning they would not need to be passed into legislation.Hong Kong police have struggled to deal with digital pump-and-dump schemes targeting brokerages – a little-known type of computer-generated fraud that surged in the Chinese territory last year.Although the money involved has so far been small – only about $20 million worth of shares – there were 81 such incidents reported in 2016, more than triple the number in 2015, according to police.

Källa: Hong Kong to tighten cyber security rules after broker hacks | Reuters

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