Hong Kong technology park Cyperport’s infrequent security audits and unnecessary retention of personal data were among the deficiencies that allowed its servers to be attacked by malicious ransomware last August, the city’s privacy watchdog has found.

Around 40 per cent of the 13,632 individuals whose personal information was leaked from the government-owned tech hub were unsuccessful job applicants and ex-employees, the Office of the Privacy Commissioner for Personal Data (PCPD) said in a report released on Tuesday.

Cyberport
Cyberport. File photo: GovHK.

According to the PCPD’s findings, a hacker accessed Cyberport’s network on August 6, 2023, and maliciously encrypted files on the server days later. A ransom note was received by the tech park on August 17 and the data breach was reported to the privacy watchdog a day after.

The data leak was not made public until September 6, around three weeks after Cyberport notified the PCPD.

The personal data that was shared to the dark web included names, identity card numbers, bank account numbers, medical reports, photographs and social media account information.

‘Clear oversight’

Privacy Commissioner for Personal Data Ada Chung wrote in the report that Cyberport lacked effective detection measures in its information systems and did not enable multi-factor authentication, which allowed the hacker to access its network remotely.

The reliance on a single anti-malware detection programme was “clearly inadequate and disproportionate” for the tech hub, which manages large-scale information systems, she wrote. Employees of Cyberport also did not have a concrete cybersecurity framework to follow, the probe found.

Online scam hacking
File photo: Sora Shimazaki, via Pexels.

“The lack of a requirement to conduct a pre-implementation risk assessment or independent security audit on one of its affected systems, before its implementation, was a clear oversight,” the 22-page report read.

‘Unnecessary retention’

The PCPD’s investigation also revealed that Cyberport had kept the personal information of unsuccessful job applicants beyond the one-year period stated in its data retention policy. The tech park also retained personal data of former employees after they had left the company.

The number of individuals affected by last August’s data breach would have been significantly reduced if Cyberport had deleted the data after the retention periods expired, the privacy watchdog remarked.

“Cyberport also did not provide justification for retaining the personal data concerned, resulting in the unnecessary retention of the personal data,” the report read.

Privacy Commissioner Ada Wong attends a press conference on April 2, 2024 on “Investigation Report on Ransomware Attack on the Information Systems of Hong Kong Cyberport Management Company Limited." Photo: Office of the Privacy Commissioner for Personal Data.
Privacy Commissioner Ada Chung attends a press conference on April 2, 2024 on “Investigation Report on Ransomware Attack on the Information Systems of Hong Kong Cyberport Management Company Limited.” Photo: Office of the Privacy Commissioner for Personal Data.

The PCPD called on Cyberport to establish a personal data privacy management programme and appoint data protection officers to oversee the company’s compliance with the Personal Data (Privacy) Ordinance. Designated personnel should also be appointed to review the implementation of data retention policies.

Risk assessments and security audits must be conducted in a timely manner, especially before launching any new system or applications, the watchdog said.

In a statement released on Tuesday, Cyberport said it took the incident “very seriously” and had established a task force to follow up on the enhancement of its defences against hacker attacks. The company had also fortified its network protection barriers and hired third-party service providers to review its network security, it said.

“Cyberport will continue to enhance cybersecurity measures, strengthening its ability to counter cybersecurity threats, and ensuring that its operations comply with the Personal Data (Privacy) Ordinance,” Director of Cyberport Victor Ng, who also chairs the task force, said.

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Ho Long Sze Kelly is a Hong Kong-based journalist covering politics, criminal justice, human rights, social welfare and education. As a Senior Reporter at Hong Kong Free Press, she has covered the aftermath of the 2019 extradition bill protests and the Covid-19 pandemic extensively, as well as documented the transformation of her home city under the Beijing-imposed national security law.

Kelly has a bachelor's degree in Journalism from the University of Hong Kong, with a second major in Politics and Public Administration. Prior to joining HKFP in 2020, she was on the frontlines covering the 2019 citywide unrest for South China Morning Post’s Young Post. She also covered sports and youth-related issues.