Hong Kong experienced a record surge in cyberattacks last year, marking the highest number of incidents in five years. Hackers are increasingly using artificial intelligence (AI) to strengthen their methods, according to the Hong Kong Computer Emergency Response Team Coordination Centre (HKCERT).
The agency reported a spike of 12,536 cybersecurity incidents in 2024, a dramatic increase of 62% from 7,752 cases in 2023. Phishing attacks dominated these incidents, with cases more than doubling from 3,752 in 2023 to 7,811 last year.
AI is aiding in improving phishing campaign effectiveness. Attackers can now use AI tools to create extremely realistic fake emails and websites that even the most skeptical eye cannot easily distinguish from their legitimate counterparts.
Alex Chan Chung-man, a digital transformation leader at HKCERT, commented that phishing attacks targeted the majority of cases for banking, financial, and payment systems, almost 25% of the total cases. Social media, including WhatsApp and messaging apps, was another main target, 22% of the total cases.
AI allows scammers to create flawless phishing messages and generate fake website links that mimic trusted services," Chan explained. This efficiency has led to a sharp rise in phishing links, with over 48,000 malicious URLs identified last year—an increase of 1.5 times compared to 2023.
Hackers are also targeting other essential services such as healthcare and utilities. A notable case involved Union Hospital in Tai Wai, which suffered a ransomware attack. In this case, cybercriminals used a malware called "LockBit" to demand a $10 million ransom. The hospital did not comply with the ransom demand but the incident illustrates the risks critical infrastructure providers face.
Third-party vendors involved with critical sectors are emerging vulnerabilities for hackers to exploit. Leaks through such third-party partners have the potential to cause heavy damages, ranging from legal to reputation-related.
New Risk: Electronic Sign Boards
Digital signboards, once left unattended, are now being targeted by hackers. According to HKCERT, 40% of companies have not risk-assessed these systems. These displays can easily be hijacked through USB devices or wireless connections and display malicious or inappropriate content.
Though Hong Kong has not been attacked this way, such attacks in other countries indicate a new threat.
Prevention for Businesses
HKCERT advises organizations to take the following measures against these threats:
Chan emphasized that AI-driven threats will develop their methods, and thus robust cybersecurity practices are needed to protect sensitive data and infrastructure.
A recent report by Group-IB has exposed a highly advanced phishing campaign targeting employees from 30 companies across 15 jurisdictions. Using trusted domains and cutting-edge personalization techniques, attackers have bypassed Secure Email Gateways (SEGs) and exploited victims in critical sectors such as finance, government, aerospace, and energy.
The investigation, initiated in July 2024, uncovered the attackers' use of:
“Nine out of ten cyberattacks start with a phishing email, making it the most common entry point for threat actors,” the report emphasized.
The attackers used professionally designed phishing emails that impersonated well-known brands, including:
These emails featured professional formatting, familiar logos, and dynamically personalized elements. For example, by extracting a victim’s email domain, the attackers matched logos and page titles to the targeted organization, enhancing credibility.
“Scammers use a technique that dynamically pulls company logos from the official website to make the phishing links look legitimate,” the report noted.
The attackers leveraged APIs like https://logo.clearbit.com/[company domain]
to integrate authentic logos into phishing sites. This seamless branding approach increased user trust and made phishing attempts harder to detect.
To evade detection, attackers used:
Victims were redirected to phishing pages that appeared legitimate, with pre-filled email addresses further enhancing the illusion of authenticity. Once users entered their credentials, the stolen data was sent to Command-and-Control (C2) servers or Telegram bots via API endpoints.
The phishing sites contained JavaScript snippets that transmitted stolen credentials using Base64 encoding, effectively hiding the data during analysis. Group-IB analysts observed: “The JSON response from Telegram’s API confirms that the stolen credentials were successfully sent to a private chat controlled by the attacker.”
Group-IB warns that these techniques signify a continuous evolution in phishing methodologies: “Threat actors are quickly adapting, constantly refining and improving their techniques to bypass security measures and exploit vulnerabilities.”
This campaign serves as a stark reminder of the ever-evolving nature of cyber threats. Organizations must strengthen their defenses and educate employees to identify and respond to increasingly sophisticated phishing attempts.
South Korea is emerging as a pivotal player in the global cybersecurity landscape, particularly against the backdrop of escalating tensions between the United States and China in cyberspace. By participating in high-profile cybersecurity exercises and fostering international collaborations, the country is bolstering its reputation as a key ally in both regional and global cyber defense initiatives.
Recently, South Korea hosted the APEX cyberwarfare exercise, which gathered cybersecurity experts and defense personnel from over 20 nations. This exercise simulated cyberattacks on critical infrastructure, enabling participants to devise defensive strategies and exchange vital insights. South Korea has also actively participated in NATO-led events, such as the Locked Shields exercise, which focuses on testing and enhancing cyber resilience.
In addition, South Korea showcased its commitment to international cybersecurity efforts by attending the Cyber Champions Summit in Sydney. The country is set to host the next iteration of the summit, emphasizing its dedication to fostering global cooperation in addressing cyber threats.
South Korea's advanced technological capabilities and strategic location have positioned it as a vital partner for the United States in addressing cyber threats, especially those originating from China. According to analysts, South Korea’s infrastructure serves as a communications hub for critical trans-Pacific submarine cables connecting major networks across Asia, including China. Experts have also suggested that the country may act as a base for US cyber operations, similar to its role in hosting the THAAD missile system in 2017.
China, meanwhile, has been enhancing its cyber capabilities in response to growing alliances among its rivals. In April 2024, China reorganized its People’s Liberation Army to include specialized units dedicated to cyber, information, and space operations. Despite these efforts, experts note that China’s cyber capabilities still lag behind those of the US and its allies.
South Korea’s increasing involvement in cybersecurity underscores its strategic importance in addressing modern cyber challenges. By collaborating with the US, NATO, and other allies, the nation is strengthening its cyber defenses while contributing to a broader security framework in the Indo-Pacific region. These initiatives are poised to shape the global cybersecurity landscape in the coming years.