Hong Kong uses brick-and-mortar banks to stop scams

"Chief executive Eddie Yue introduced them in late 2024 in a letter [PDF] that stated they're needed due to "the surge in fraud and scam cases in recent years with customer losses typically involving payments from customers' bank accounts." Yue observed that scammers sometimes establish internet banking accounts without customers' permission. The Monetary Authority therefore required all local banks to establish Money Safe accounts that allow customers to set aside funds which they can only access by visiting a brick-and-mortar bank."

"As explained in a Hong Kong government announcement published on Tuesday, "When customers need to use the protected deposits, banks will conduct a face-to-face anti-scam verification with the customers, thus offering them a chance to carefully consider whether they have been scammed. Customers can transfer or withdraw the deposits only after completing the process." The Monetary Authority gave banks until December 31st to develop and deploy Money Safe accounts, and all have complied."

Hong Kong's Monetary Authority mandated 'Money Safe' accounts so customers can set aside funds accessible only by visiting a branch or office for ID checks. Banks will conduct face-to-face anti-scam verification before allowing transfers or withdrawals from those protected deposits. The move responds to increased fraud and cases where scammers set up internet banking accounts without customers' permission. Banks had a December 31 deadline to deploy Money Safe accounts and all complied, with some adding app features. The government will promote usage and encourages storing cash not needed in the near term in these accounts. Financial services account for about a quarter of Hong Kong's GDP, making bank protection economically important.

Read at Theregister