Key insights
- Hong Kong's SFC has warned licensed firms, especially internet brokers and virtual asset platforms, about escalating AI-driven cyber threats. The regulator cited a 27% rise in cyber incidents and highlighted AI's role in accelerating attacks and enhancing phishing. This warning, echoed by regulators in Australia and Japan, signals a growing global concern over AI's misuse in cybercrime, potentially impacting financial institutions' operational stability and client trust, which could indirectly affect market sentiment and investment flows.
Investing.com -- Hong Kong’s Securities and Futures Commission told licensed firms on Tuesday to strengthen their cybersecurity measures as AI-driven cyber threats become more advanced and targeted.
The regulator said in a circular that licensed firms, particularly internet brokers and virtual asset-trading platforms, need to implement current safeguards to block unauthorized access to client data and prevent asset theft.
Cyberattack incidents rose 27% to 15,877 in 2025 from 12,536 in 2024, according to data from the Hong Kong Computer Emergency Response Team Coordination Centre cited by the commission.
The SFC said AI allows attackers to find and exploit weaknesses more quickly and conduct large-scale attacks, while making phishing and social engineering easier to execute.
The regulator outlined several areas where companies should improve cybersecurity, including patching and vulnerability management, detection and monitoring, and incident response and recovery.
Eric Yip, the SFC’s executive director of intermediaries, said senior management at licensed firms must take main responsibility for cyber resilience and protecting client assets.
Global regulators have issued similar warnings recently, with Australia’s watchdog doing so in late April and Japan’s banking authority in mid-May, about growing risks linked to Anthropic’s new AI model, Mythos.
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