Hu Xiaoming, Alibaba's vice president for small- and micro-financial group and chief risk officer, announced in Beijing that the company will invest CNY40 million to establish a security fund.

The security fund will be used to fight Internet phishing, trojans, money laundering, malicious attacks, and to protect user information.

The security fund will cooperate with banks, financial organizations, industry peers, and security manufacturers. Meanwhile, Alibaba's Internet payment subsidiary Alipay will enhance security investment in product design. The upcoming Alipay wallet version 8.1 has reportedly added innovative security services such as device management and short message safeguards.

With the device management function, users can use their own mobile phones to check on which mobile phones they have ever used with Alipay and they can delete those records via their own mobile phones. Commenting on the new function, Hu said that most mobile payment users make payments with multiple mobile phones and this new device management service will effectively control the risk of losing personal information.