The Hong Kong government has ruled out the introduction of a joint liability compensation scheme for telecom and online fraud cases, citing difficulties in clearly assigning responsibility for losses, Secretary for Commerce and Economic Development Algernon Yau Ying-wah said on Thursday.

Yau made the remarks in response to a question from New Territories North West lawmaker Mark Chong Ho-fung, who inquired whether the government would consider establishing a unified and simplified civil asset recovery process. Chong noted that victims of telecom and online scams often confront lengthy and costly legal proceedings when seeking compensation.

The secretary cautioned that imposing joint liability on telecom operators or financial institutions—especially those that have already exercised due diligence—could undermine business confidence and deter investment in Hong Kong. “Such arrangements are uncommon in other common law jurisdictions and might create moral hazards,” Yau said, warning that they could reduce public vigilance against scams and complicate routine commercial activities.

Yau further indicated that available data do not demonstrate the effectiveness of joint liability compensation schemes. Instead, he emphasized that Hong Kong has already implemented cross-departmental and public-private initiatives that have yielded results in combatting fraud. He highlighted that victims currently have recourse to civil courts to pursue claims, with the judiciary working to reduce waiting times for legal proceedings.

Looking ahead, the government pledged to continue monitoring fraud trends closely and to study international practices to enhance public protection measures. The position suggests ongoing efforts to balance fraud prevention with maintaining a conducive environment for business operations.