News
23 June 2005
Leading banks align with Hongkong Post by adopting e-Cert on Smart ID card for two-factor authentication in secure e-banking
Today, Hongkong Post encouraged the public to use e-Cert as "two-factor authentication" in secure e-banking. The move by Hongkong Post comes in conjunction with twelve banks and financial institution in Hong Kong starting to roll out "two-factor authentication" in e-banking transactions this month to meet the new requirements set out by the Hong Kong Monetary Authority (HKMA).
Two-factor authentication strengthens the security of e-banking by offering stronger online identity authentication. Hongkong Post e-Cert embedded on smart ID card is a readily available two-factor authentication tool. It uses a combination of two different factors to verify a user's identity. The first factor is "something the user knows", the e-Cert password, and the second factor is "something the user physically possess", the e-Cert embedded smart ID card. The e-Cert password (first factor) is used to generate a digital signature for identity verification and the password does not need to be transmitted over the Internet. The e-Cert embedded smart ID card (second factor) is physically held by the user and cannot be stolen by the fraudster over the Internet. Therefore, the identity of e-banking user can be securely protected against theft and fraud over the Internet.
Through the program of one-year free e-Cert offer with smart ID card, so far more than 950,000 local residents have already embedded Hongkong Post e-Certs in their smart ID cards. e-Cert on smart ID card has become the most widely recognised and readily available two-factor authentication tool owned by consumers in the market. Business sectors can also develop new secure e-business applications riding on this broad infra-structure of e-Cert holders.
Hongkong Post has been actively promoting the e-Cert to the business sectors and to the public. Recognising the importance of two-factor authentication as a crucial platform for secure e-banking transactions, one major promotion target for Hongkong Post e-Cert has been the banking sector.
Mr Allan Chiang, Postmaster General, said, "We have been working closely with banks to ensure a reliable and cost-effective solution that meets the new HKMA mandate of using two-factor authentication in e-banking. The Hongkong Post e-Cert has already been widely applied in corporate e-banking, and now, banks are extending its use to provide the same authentication to the general public.
The critical mass of e-Cert embedded smart ID card holders has created a broad base in the market that will facilitate the extension of two-factor authentication to personal e-banking. We are confident that e-Cert as a multi-application authentication tool in electronic services will offer added convenience to consumers using e-banking services."
Mr Howard Dickson, Government Chief Information Officer of the Commerce, Industry and Technology Bureau (CITB) congratulated Hongkong Post for creating a broad secure infrastructure that drives forward new e-government and e-business application development in Hong Kong, "One of the objectives of the Government in building a critical mass of e-Cert holders is to encourage the business sector to develop new applications and services using e-Cert as a platform for secure electronic transactions. My colleagues and I are delighted to see that the PKI and e-Cert will be playing an important role in supporting e-banking development in Hong Kong. And we look forward to seeing more commercial e-Cert applications launched in the near future."
Mr Arthur Yuen, Executive Director, Banking Supervision, HKMA said, "Two-factor authentication is effective in protecting bank customers from Internet banking frauds. Hongkong Post e-Cert as a two-factor authentication method will further strengthen the Internet banking security in Hong Kong. I am confident that e-Cert will bring significant benefits and better protection to the public. With the joint efforts of the banking sector, bank customers, Hongkong Post and the HKMA, we can preserve a safe and sound environment for the further development of Internet banking in Hong Kong."
The banking sector has adopted e-Cert as two-factor authentication in e-banking since 2000. In view of the large number of e-Cert embedded smart ID cards issued, e-Cert has become a very convenient, reliable and cost-effective option for two-factor authentication. (For the list of e-Cert partner banks and their comments on e-Cert, please refer to Appendix I.)
From June to September 2005, Hongkong Post and the e-Cert partner banks will jointly launch a series of usage promotion campaigns, offering gifts such as free smart card readers and cash coupons as a reward to selected e-banking customers using the e-Cert as two-factor authentication.
To obtain more information about Hongkong Post e-Cert services, please visit our web site at http://www.hongkongpost.gov.hk.
Speech for Mr. Allan CHIANG, Postmaster General
Appendix I - Comments on Hongkong Post e-Cert from e-Cert partner banks
Fact Sheet
Hongkong Post hosted the Media Conference on "e-Cert provides two-factor authentication for secure e-banking" at Island Shangri-La, Hong Kong on 23 June 2005. Mr. Allan CHIANG, Postmaster General (middle), Mr. Howard Dickson, Government Chief Information Officer (right), and Mr. Arthur Yuen, Executive Director, Banking Supervision, Hong Kong Monetary Authority (left), officiated at the Media Conference.