Guideline on secure handling of customers' credit card data launched for retail businesses
2002-7-9
The Independent Commission Against Corruption (ICAC) today (Tuesday) issued a guideline on secure handling of customers' credit card data for operators and management of retail businesses, restaurants, karaoke lounges and hotels.
The guideline highlights the common corrupt and fraudulent means involved in the illegal collection of credit card data, exemplified through several past ICAC cases, and offers anti-corruption advice.
Programme Coordinator (Business Sector) of the ICAC's Community Relations Department, Mrs Helen Lee Ching Po-han, said: "We have seen cases in which counterfeit credit card syndicates had bribed the staff of some retailers to steal credit card data from t heir customers.
"The guideline issued by the ICAC will help raise the retail business community' s alertness to these corruption loopholes," she added.
Employers and managers should take necessary and practicable steps to improve their work procedures and security measures to prevent the theft of customers' credit card data, she said.
A number of corruption prevention recommendations are listed in the guideline to reinforce their internal controls.
The recommendations include: formulating code of conduct for staff, providing clear and detailed procedures and guidelines for handling credit card transactions, implementing effective staff supervision measures and strengthening staff training.
Mrs Lee said retail businesses should adopt preventive measures against the theft of customers' credit card data because repeated occurrence of these incidents would undermine customer confidence.
In the past three years, the ICAC received 76 corruption reports relating to counterfeit credit card frauds. Among them, 59 concerned the skimming of credit card data with 41 persons convicted after trials.
A total of 22,000 copies of the guideline pamphlet, in English and Chinese, have been produced. It will be distributed together with posters to retailers, restaurants, hotels, and karaoke lounges through the respective trade associations.
The guideline can also be obtained from the eight ICAC Regional Offices or downloaded from the ICAC corporate website ( www.icac.org.hk ).
At a seminar jointly held today with restaurant associations, the ICAC and credit card issuing agencies shared with about 140 representatives from the restaurant industry their views and experiences on the protection of customers' credit card data.
Guests and speakers attending the seminar include: Legislative Councillor and Chairman of Hong Kong Catering Industry Association, Mr Tommy Cheung; Chairman of the Association of Restaurant Managers, Mr Ching Kee; Representative of the Management Committe e-Card Authorization System in PRC, Mr Kenny Lau; Director of Membership, Rules and Risk Management (Greater China Region) of Visa International, Mr Michael Chan; Director of Security and Risk Management (Hong Kong and Macau) of MasterCard International, Mr Barry Wong.
Representing the ICAC at the seminar are the Assistant Director of Community Relations, Ms Julie Mu; Regional Officer (Hong Kong East) Ms Rita Liaw; and Senior Investigator of the Operations Department, Mr Heath Cheung.
The ICAC will also organise seminars jointly with the District Fight Crime Committees of Central and Western, Wanchai and Sham Shui Po in their respective districts to further promote the importance of protecting customers' credit card data and related co rruption prevention measures.
The guideline highlights the common corrupt and fraudulent means involved in the illegal collection of credit card data, exemplified through several past ICAC cases, and offers anti-corruption advice.
Programme Coordinator (Business Sector) of the ICAC's Community Relations Department, Mrs Helen Lee Ching Po-han, said: "We have seen cases in which counterfeit credit card syndicates had bribed the staff of some retailers to steal credit card data from t heir customers.
"The guideline issued by the ICAC will help raise the retail business community' s alertness to these corruption loopholes," she added.
Employers and managers should take necessary and practicable steps to improve their work procedures and security measures to prevent the theft of customers' credit card data, she said.
A number of corruption prevention recommendations are listed in the guideline to reinforce their internal controls.
The recommendations include: formulating code of conduct for staff, providing clear and detailed procedures and guidelines for handling credit card transactions, implementing effective staff supervision measures and strengthening staff training.
Mrs Lee said retail businesses should adopt preventive measures against the theft of customers' credit card data because repeated occurrence of these incidents would undermine customer confidence.
In the past three years, the ICAC received 76 corruption reports relating to counterfeit credit card frauds. Among them, 59 concerned the skimming of credit card data with 41 persons convicted after trials.
A total of 22,000 copies of the guideline pamphlet, in English and Chinese, have been produced. It will be distributed together with posters to retailers, restaurants, hotels, and karaoke lounges through the respective trade associations.
The guideline can also be obtained from the eight ICAC Regional Offices or downloaded from the ICAC corporate website ( www.icac.org.hk ).
At a seminar jointly held today with restaurant associations, the ICAC and credit card issuing agencies shared with about 140 representatives from the restaurant industry their views and experiences on the protection of customers' credit card data.
Guests and speakers attending the seminar include: Legislative Councillor and Chairman of Hong Kong Catering Industry Association, Mr Tommy Cheung; Chairman of the Association of Restaurant Managers, Mr Ching Kee; Representative of the Management Committe e-Card Authorization System in PRC, Mr Kenny Lau; Director of Membership, Rules and Risk Management (Greater China Region) of Visa International, Mr Michael Chan; Director of Security and Risk Management (Hong Kong and Macau) of MasterCard International, Mr Barry Wong.
Representing the ICAC at the seminar are the Assistant Director of Community Relations, Ms Julie Mu; Regional Officer (Hong Kong East) Ms Rita Liaw; and Senior Investigator of the Operations Department, Mr Heath Cheung.
The ICAC will also organise seminars jointly with the District Fight Crime Committees of Central and Western, Wanchai and Sham Shui Po in their respective districts to further promote the importance of protecting customers' credit card data and related co rruption prevention measures.