Hong Kong's Monetary Authority on Monday urged banks and consumers to boost Internet banking security due to growing sophistication in fraud techniques.

The authority issued a circular on Monday requiring authorized institutions to notify their customers immediately via SMS after they complete an online high-risk transaction. It also urged customers to verify the transaction details and notify their bank immediately if they discover any unauthorized transactions.

Some fraudsters infected customers' computers with Trojan horse programs to hijack their Internet banking particulars, including one-time passwords for two-factor authentication, and used them to conduct high-risk e-banking transactions like transferring funds to an unregistered third-party account, the authority said.

It said e-banking services with two-factor authentication are safe to use, as long as both customers and banks take proper security precautions.

The authority said it will work with the industry and police to monitor the latest technological developments and trends in Internet banking fraud, and boost consumer education.

(Xinhua News Agency July 14, 2009)