Data Privacy and Cyber Security in Hong Kong: The New Enforcement Imperative

October 06, 2014

Cyber security has gained increasing attention in recent years and cyber attacks have become more sophisticated and more frequent. Cyber attacks and other data breaches can affect millions of customers and leave them vulnerable to credit card fraud and other fraudulent conduct based on stolen confidential personal information. Companies implicated in data breaches face the compounded risks of:

  1. loss of their own valuable business data and intellectual property, and customer information;
  2. reputational damage;
  3. investigations by regulators and other enforcement agencies, and resultant fines; and
  4. complaints and civil claims from customers/ counterparties (including class actions in certain jurisdictions).

In the financial services industry, data breaches also pose risks to the integrity of the financial markets through the theft of confidential financial and customer information with which to place trades or effect monetary transfers.

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