Hong Kong and the Impact of Cyber Crimes Essay Example | Topics and Well Written Essays - 750 words

Hong Kong and the Impact of Cyber Crimes - Essay Example Nonetheless, no process is without a flaw; and many take advantage of this fact to steal from individuals and organizations that engage in e-payments. Despite all efforts of the government to restrain cyber crimes, and of information technology specialists to fortify domain firewalls, anxieties related to online transactions are mounting, and in a way, adversely affect international marketing endeavors. I. E-payment and Cybercrimes Electronic payments â€Å"refer to the systems and strategies required to enable the actual disbursement of funds electronically. It is concerned not only with the electronic transactions themselves, but also with the infrastructure required for billing and buyer authentication† (Botha and Geldenhuys, 2004, p. 67). The funds may be in the form of electronic checks, credit cards, purchasing cards, and electronic cash (Rainer and Cegielski, 2007). Authentication typically involves the username and password tandem, although other institutions support e xtended verification systems. For instance, Hong Kong and Shanghai Banking Corporation (HSBC) provide internet bankers with security device, while Emirates NBD incorporate the CHIP and PIN technology in all debit accounts. A team of researchers from Indiana University and Microsoft Corporation reported that major e-payment systems, e-retailers and e-commerce platforms have system security software glitches that can be abused by illicit websites to divert payments, or obtain goods for free or at reduced prices (Demery, 2011). Meanwhile, the Internet Fraud Complaint Center in the United States receives 200,000 consumer complaints per year, with securities and commodities fraud encompassing 16 percent (Miller and Jentz, 2009). Banks that rely heavily on online operations are at risk of losing profits as consumers also lose confidence on the security of online banking, specifically electronic payment of bills. Yet, although perpetrators of cyber crimes generally victimize financial serv ice companies, the Anti-Phishing Working Group has recorded cases of attempts to exploit â€Å"social networking and gambling sites† as well (CIO, 2007, p.36) II. Cyber Crimes in Hong Kong The Census and Statistics Department reveals that 76 percent of households in Hong Kong have computers, 73 percent of which maintains broadband connection; and about 63 percent of firms use personal computers, 98 percent of which do regular emails (Cagape, 2010). The figures clearly indicate that majority of the population in Hong Kong engage in online pursuits, and a significant portion of businesses are conducted via the internet. This alone leaves the country a viable target for cybercrimes. Speakers at the Information Security Summit 2008 reported an increase of 44 percent in hacking attacks in Hong Kong between January and October 2008, while the Computer Emergency Response Team (CERT) stated that during the same period, they have already dealt with 483 incidents of cyber crimes (Spam Fighter, 2008). Unfortunately, Hong Kong is also deficient in internet laws and certain websites are criticized for mediocre security features. Michelle Chan of Herbert Smith law firm observes that existing internet laws in Hong Kong are appropriate for misconducts in the early 1990s, but no further amendments were effected since then. On the other hand, this does not mean