SFC Warns Financial Firms Over AI-Enabled Cyber Threats

Hong Kong’s Securities and Futures Commission has urged licensed financial institutions to strengthen defences against AI-enabled cyber threats, warning that brokers and virtual asset trading platforms face growing risks from phishing, social engineering and deepfake attacks.

The regulator said rapidly advancing artificial intelligence tools are making it easier for cybercriminals to launch large-scale attacks and misappropriate client assets.

The warning comes after reported cyber incidents in Hong Kong rose 27% last year to nearly 16,000 cases.

The SFC said firms should enhance vulnerability management, threat monitoring and recovery planning to address AI-enabled cyber threats.

Eric Yip, executive director of intermediaries, said senior management carries primary responsibility for ensuring cyber resilience and maintaining effective risk controls.

The regulator added that it would conduct targeted reviews and take supervisory action where weaknesses are identified, underscoring the growing importance of cybersecurity across the financial sector.