HSBC Chairman Vincent Cheng

HSBC Chairman Vincent Cheng yesterday apologized to customers for losing the data of 159,000 customer accounts from their Kwun Tong branch on April 26.

The data, contained in a computer server, includes customer names, account numbers and transaction information. But he reiterated that the server does not carry information such as passwords or user IDs.

"On behalf of HSBC, I apologize to our customers," Cheng said, adding that the bank will be responsible for the incident.

He ensured affected customers that the missing server has multiple protections, and believed there is a slight chance that the data will be used for fraud.

"The incident is a kind of theft, and HSBC is also a victim," he added.

Nonetheless, he admitted that the bank needs to review if there are procedures that it could have taken.

HSBC was criticized for not announcing the case until two weeks after it was discovered.

The bank is going to examine the incident to avoid losing data again in future.

But Cheng stressed that the bank's daily security is quite sufficient.

The bank has received inquiries from some clients, but no one has asked for compensation yet.

Some customers have canceled their accounts for fear of loss of their deposits or personal data.

However, Consumer Council chief executive Connie Lau asked the public not to panic.

HSBC has assured us that Personal Identification Numbers (PINs) or account passwords have not been leaking out in the incident, she said.

"But to be on the safe side, clients may change their Automatic Teller Machine (ATM) PINs and Internet banking passwords," she added.

She alerted customers to unusual activities in their accounts.

She also said the Consumer Council has been in touch with HSBC, and the council is ready to provide assistance to clients when needed.

(HK Edition 05/09/2008 page1)