Bastille's Report: Money Safe Safeguards HKD 3.3 Billion in Deposits Over Two Months, HKMA: No Suspicious Unlocking Cases

Launched at the end of last year, Money Safe had been used by nearly 8,200 customers as of late January, safeguarding a total of HKD$3.3 billion in deposits. Mr. Alan Au, the Executive Director (Banking Conduct) of the Hong Kong Monetary Authority (HKMA), stated in the interview with Bastille Post that no suspicious unlocking cases have been reported so far. He expected that with the enhanced promotion of Money Safe, its usage would steadily increase.

Mr. Alan Au, the Executive Director (Banking Conduct) of the Hong Kong Monetary Authority (HKMA)

In recent years, Hong Kong has continued to see a high number of fraud cases. According to the statistics of the Police, a total of 43,212 fraud cases were recorded in 2025, involving losses of approximately HKD$8.1 billion. Against this backdrop, asset protection has become increasingly critical. At the end of 2025, HKMA and the Hong Kong Association of Banks announced that all 28 retail banks, including digital banks, would fully offer Money Safe to individual clients by December 31.

Multiple Platforms for Promotion

Mr. Au pointed out that many citizens proactively opted to use Money Safe after learning that banks would provide related services. To further raise public awareness of Money Safe, HKMA has released posters and promotional leaflets, and would issue TV promotional videos, and radio spots to strengthen its publicity campaign.

At the end of 2025, HKMA and the Hong Kong Association of Banks announced that all 28 retail banks, including digital banks, would fully offer Money Safe to individual clients by December 31.

Since last year, HKMA has been disseminating anti-fraud messages—including those related to Money Safe—through its bank branch network and digital platforms, 43 hospitals and clinics under the Hospital Authority (HA), and over 500 social welfare organizations. Mr. Au added that HKMA will continue to collaborate with stakeholders and promote Money Safe to the public via community networks. Banks will also step up their promotional efforts. All retail banks, including digital banks, will offer various incentives during the initial launch phase to encourage more customers to learn about and use Money Safe.

Elderly Make Up Most Scam Victims, Banks Proactively Intercept Fraud

Scam tactics continue to evolve, with the elderly often being the primary target of fraudsters. In the first nine months of 2025, a total of 2,586 telephone scam cases were recorded, of which 45% of the victims were aged 60 or above, incurring losses exceeding HKD$480 million.

Mr. Au stressed that the public requires comprehensive fraud prevention measures. As for frontline bank branch staff, they have remained vigilant in monitoring suspicious cases and frequently succeeded in dissuading customers from falling victim to scams. In one instance, an elderly client requested the transfer of several hundred thousand dollars to "repay a friend". Noticing that the client was unable to provide the recipient's name, and that the recipient's account was recently opened, with some abnormal situation occurring. Therefore, they suspected that the client had been scammed and eventually successfully persuaded the client not to make the transaction.

Money Safe functions like setting up a safe within a bank account, allowing clients to customize a protected deposit amount.

In another case, an elderly client appeared anxious while on a video call. Bank staff proactively inquired and learned that the client intended to reissue his online banking password and authorize a third party to conduct transfers. Since the client had paid multiple "handling fees" according to the instructions of a scammer who claimed to be a "telecom company employee", the bank staff contacted his family and froze the relevant account to prevent further losses with the client's consent.

Mr. Au added that a bank shared an instance in which a client was concerned that his account would be hacked. The bank immediately advised the client to use Money Safe, which ensures that deposits can only be withdrawn after the customer visits a branch in person. It's understood that, since banks fully launched Money Safe at the end of last year, no suspicious unlocking cases have been reported.

In-Person Branch Verification Ensures Account Safety

Money Safe functions like setting up a safe within a bank account, allowing clients to customize a protected deposit amount. When a client needs to access the protected deposit, the bank will conduct an in-person anti-fraud verification process, allowing the client an opportunity to reconsider whether they may be falling victim to a scam. Only after completing the verification can the client transfer or withdraw the protected deposit.

Regarding the unlocking process, clients must visit a branch for face-to-face verification before withdrawing or transferring deposits protected by Money Safe.

Regarding the unlocking process, Mr. Au explained that clients must visit a branch for face-to-face verification before withdrawing or transferring deposits protected by Money Safe. During verification, bank staff will need to inquire about the specific purpose of the transaction, to help clients to "have some time for careful thinking" and identify any suspicious factors. Moreover, the staff will also conduct further inquiries into individual situations and pay attention to whether the client was induced or pressured by a scammer to make the transaction.

The specific verification procedures will also be adjusted according to the evolving fraud tactics. HKMA has required banks to develop appropriate procedures for handling suspicious cases. If any suspicious situation is detected, the bank can immediately alert the client or seek assistance from the police as needed. Nevertheless, the final decision on whether to cancel Money Safe's protection and withdraw the deposit still rests with the client. Mr. Au reiterated that even with Money Safe, clients must remain vigilant at all times and stay alert to scams.

Flexible Handling of Special Situations

Addressing the situations where clients may be unable to visit a branch in person to unlock their Money Safe—such as when staying abroad or facing urgent financial needs—Mr. Au stated that HKMA had taken into account the balance between client convenience and security guarantee during the design phase. Banks are required to clearly explain the operation and cancellation processes before clients enable the service, reminding them to maintain sufficient funds to meet daily and emergency needs.

He further noted that when clients are unable to cancel the protection of Money Safe in person due to special circumstances—such as hospitalization or a serious accident in other regions—banks can adopt alternative yet equally effective measures, supplemented by additional verification procedures to confirm clients' identity and instructions, ensuring clients are properly protected. Banks will handle these situations on a case-by-case basis, with flexibility to guard against various tactics that scammers may attempt to exploit.

In processing the cancellation of Money Safe's protection, banks will confirm clients' instructions in accordance with the signing arrangements for the account, including joint accounts, as with the processing of other banking services. Mr. Au expressed confidence that banks will provide flexible arrangements based on clients’ needs and communicate with them to strike an optimal balance between fraud prevention and client assistance.

HKMA, Photo source: reference image

LOS ANGELES (AP) — At 71 and a few years into retirement, Linda Henry felt like she was in good health, and only went to her doctor in Southern California for the occasional checkup.

So it was a shock when she found out in 2024 that she had been enrolled in hospice, a specialized end-of-life care usually provided to people with six months or less to live. A Medicare worker told her the system said she had heart failure.

Henry was a victim of rampant fraud in the hospice industry, a problem that's been especially extreme in California, where scammers have taken advantage of historically weak government oversight. Fraudsters have created fake hospices and tricked people into enrolling, or stolen people's identities to bill Medicare for hospice services.

California's been a focus of the Trump administration's crackdown on fraud in federally-funded health programs, with more than 1,000 California hospices removed from Medicare since early 2025. Federal officials estimate LA County alone accounts for an estimated $3.5 billion in fraudulent hospice claims.

The state says it's doing its part to tackle the issue. California has revoked nearly 500 licenses since putting a moratorium on new hospices in 2021 and in June adopted long-awaited emergency regulations that set more stringent criteria for approving new licenses.

Since hospice is a form of palliative care meant for terminally ill patients, once someone enrolls in it, Medicare will not pay for additional medical treatment outside of it, leaving vulnerable seniors to miss out on appointments and be denied crucial care. Meanwhile, millions of taxpayer dollars are being funneled to fraudsters every year, and those who truly need hospice care might not get it if they enroll with a fraudulent hospice operator.

Advocates say they don’t have a clear estimate of how many people like Henry have been unwittingly caught up in fraud, but urge state and federal cooperation.

In 2026, the state had about 2,100 hospice organizations, down from 2,800 four years prior. New York, which has far more stringent rules for registering a hospice, has just 39, according to its state health department.

A 2022 state audit found rampant fraud and abuse in the system, particularly in LA County. It found dozens of hospice agencies were often clustered in the same building as well as a rapid increase in the number of hospices being established and abnormally high rates of patients being discharged. Hospice is often provided at patients’ homes, meaning one registered hospice can serve patients in numerous locations.

In April, federal prosecutors made arrests in five cases involving hospice fraud in the LA area. A week later, California Attorney General Rob Bonta said 21 people were arrested for a multimillion scheme to use stolen identities to charge for hospice services. His office has filed more than 100 hospice-related criminal cases and secured over 50 hospice-related convictions since 2021.

“This is a California problem,” First Assistant U.S. Attorney Bill Essayli said at a press conference announcing the federal arrests in April. “I call California the kingdom of fraud, and Gavin Newsom reigns over this kingdom here.”

Critics have accused the Trump administration of basing its fraud-busting efforts on politics, with the harshest penalties placed on states run by Democrats. Those efforts have at times contained errors. In April, the administration acknowledged to The Associated Press it made a significant error in figures it used to help justify a fraud probe in New York.

“This isn’t a political game for us. This is about protecting taxpayer dollars, protecting programs sick and vulnerable Californians rely on, and protecting our state,” Attorney General Rob Bonta said in a statement a few days later.

Fraud might begin with a robocall, or a knock on the door asking someone to sign a form giving away their personal information and Medicare number. They might offer gift cards and vitamin supplements, or even weekly cash deliveries in exchange for signing up for hospice.

Henry believes her Medicare number was stolen after a healthcare payment portal that services insurances was hit by a cyberattack.

She found out about her hospice enrollment in September 2024 after her doctor billed Medicare for an allergy test and was denied. Soon, other claims were being returned unpaid.

For months, she made dozens of calls and wrote emails to Medicare. Her doctor wrote a letter stating that she was in good health.

She was allegedly enrolled at Fortuna Hospice Inc., which did not pick up the phone or return her messages. At one point, Henry drove to the listed address and found only a seemingly empty office building. She spoke with FBI investigators, the state health and human services agency, and a nonprofit advocacy group for Medicare patients.

“I delayed physical appointments and my colonoscopy and all this stuff because I knew that we were going to fight about this and it wasn’t going to get paid,” she said.

Eight months later, Medicare recognized that she was a victim of fraud. One year after she lodged her complaint, she finally began seeing doctors again.

Some of the enhanced oversight began under the Biden administration, when the federal government said it would place newly Medicare-enrolled hospices in California, Arizona, Nevada and Texas under a period of enhanced oversight. The agency added Georgia and Ohio in December 2025, and CMS announced in May a nationwide six-month moratorium on all new Medicare enrollments by providers of hospice and home care.

The Trump administration's fraud crackdown has invited criticism for its focus on providers with immigrant backgrounds. In January, Dr. Mehmet Oz of the Centers for Medicare and Medicaid Services blasted rampant fraud in Los Angeles County while standing outside an Armenian bakery and alleging the “Russian Armenian mafia” was behind the scams. That prompted a civil rights complaint by Newsom. An investigation into daycare fraud in Minnesota centered on facilities run by immigrants from Somalia.

Beyond hospice, the Trump administration has deferred more than $2 billion in Medicaid payments to the state because of “suspected fraud and noncompliance.” Medicaid is the government-funded healthcare program for low-income people. State officials say the federal government hasn't provided details about why they suspect fraud.

In June, the Justice Department announced criminal charges against fraudsters responsible for $6.5 billion in false claims submitted to Medicare, Medicaid, and other healthcare programs across the country.

Sheila Clark, CEO of the California Hospice and Palliative Care Association, testified at an April congressional hearing about a woman who couldn’t get her cataract surgery approved by Medicare because she was falsely enrolled in hospice.

The woman fell while trying to go to the bathroom at night because she couldn’t see and broke her hip.

“She died two months later in a skilled nursing facility. That did not need to happen,” Clark said. “These scammers here are going to do whatever they have to do to try and survive, and we need to work at the state level and the federal level to make sure that we are going to clean house.”

Linda Henry poses for a photo in Long Beach, Calif., on July 16, 2026. (AP Photo/Jae C. Hong)

Linda Henry poses for a photo in Long Beach, Calif., on July 16, 2026. (AP Photo/Jae C. Hong)

Linda Henry poses for a photo in Long Beach, Calif., on July 16, 2026. (AP Photo/Jae C. Hong)

Linda Henry poses for a photo in Long Beach, Calif., on July 16, 2026. (AP Photo/Jae C. Hong)