Opinion | Preventing cyber ransomware to safeguard financial center status

By Dr. Kevin Lau

The lives of modern individuals heavily rely on mobile phones and the internet. Not long ago, the computer systems of Cyberport and the Consumer Council were hacked and held for ransom, resulting in the malicious disclosure of personal information. If larger-scale systems, such as financial transactions, airport management, railway management, and medical services, were to be compromised, the entire Hong Kong would be paralyzed, with unimaginable consequences.

A professional cybersecurity company in Europe has calculated that in 2023 alone, there were approximately 130,000 detected cases of cyber attacks, nearly 20% of which were considered threatening security incidents. Compared to the previous year, the number of victims of online extortion has increased by a staggering 46%, reaching the highest record ever.

In November of this year, I came across a news report stating that a subsidiary of China's Industrial and Commercial Bank of China fell victim to a ransomware attack in the United States, resulting in the disruption of some of their systems and the inability to provide services to customers. In the same month, Toyota Financial Services experienced a similar attack to Cyberport and the Consumer Council, where hackers threatened to leak stolen data unless a ransom was paid. With the increasing number of customers using online banking services, if banks fail to prioritize network security, a large amount of highly sensitive personal information will be at risk. However, this is still at the individual level. Now, imagine if the targeted network was that of Hong Kong's vital financial institutions, causing issues with the stock market, futures market, and numerous trading platforms. Hong Kong's financial system would be paralyzed, resulting in astronomical losses, not to mention the damage to reputation. Once customers lose confidence in the stability of Hong Kong's financial system, they will no longer engage in business transactions here.

It is evident that the importance of cybersecurity cannot be underestimated. Modern businesses no longer operate solely through manpower but rely heavily on the internet. While defenses against cyber attacks exist, the complexity and frequency of such attacks are rapidly increasing. If these defenses are breached, the consequences could include the malicious disclosure of sensitive data, expensive ransom demands, reputational damage, and violations of operational compliance. It is unlikely that any Hong Kong enterprise can withstand such consequences.

In the past, most cyber attacks were carried out by small-scale or even individual hackers. However, it has now evolved into a massive "black market business," with a significantly upgraded level involving organized crime or even state-sponsored espionage and cyber warfare activities. Some of the latest cyber attacks are highly sophisticated, capable of easily bypassing untrained defenses or circumventing existing cybersecurity measures. Therefore, I believe that both the Hong Kong government and local enterprises must recognize this new trend to fully understand the importance of significantly enhancing cybersecurity.

The management of the government and businesses are occupied with numerous tasks, but the following issues must be prioritized: How can the loss of sensitive data be prevented to protect business and compliance? How can the personal information of customers and employees be safeguarded? How can costly service disruptions be avoided by preventing cyber attacks? How can customer loyalty and trust be maintained through maintaining network security? Frankly speaking, is there any other way besides significantly enhancing network security?

The author is a specialist in radiology with a Master of Public Health from the University of Hong Kong, and an adviser of Our Hong Kong Foundation.

The views do not necessarily reflect those of DotDotNews.