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| A customer is performing facial biometric authentication. VNA/VNS Photo |
HÀ NỘI – The number of fraud cases resulting in financial losses for customers in August decreased by 50 per cent compared to the monthly average for the first seven months of the year, according to credit institution monitoring reports.
Phạm Anh Tuấn, head of the Payment Department at the State Bank of Việt Nam (SBV), attributed this decline to the official implementation of biometric authentication in online banking transactions. The number of fraud cases, associated financial losses, and bank accounts receiving fraudulent funds saw significant drops following this measure.
Specifically, August saw a 50 per cent decrease in customer losses due to fraud and a 72 per cent reduction in bank accounts receiving fraudulent money, compared to the average figures from the first seven months of 2023. Some institutions even reported no fraud cases in August and September.
This follows a decision made in December 2023 by the SBV Governor, mandating safety and security measures for online banking and card transactions, which took effect on July 1. Under this regulation, online transfers exceeding VNĐ10 million (US$403) per transaction or VNĐ20 million ($806) cumulatively in one day require biometric authentication.
The regulation aims to verify that online banking transactions are conducted by legitimate account holders, thereby protecting customers, reducing fraud, and preventing the misuse of accounts and e-wallets for illegal activities. In the first two months since the regulation took effect, approximately 47.4 million customers successfully registered their biometric information.
NAPAS reported an average of 25 million daily transactions in July and August, with around 1.6 million transactions valued over VNĐ10 million each. Although transaction volumes remained stable, the notable reduction in fraud underscores the regulation’s effectiveness.
To further enhance security, Tuấn urged payment service providers and intermediaries to continue collecting biometric data and cross-referencing it with chip-based national ID information. Starting January 1, 2025, accounts not verified through biometric collection will be limited to in-person transactions at service counters.
While not all online banking transactions will require biometric verification, the regulation mandates such verification for transactions exceeding specified values under Decision 2345. A new circular, expected in October, will replace Circular 35/2016/TT-NHNN to strengthen the legal framework for internet banking safety and security.
Currently, over 84 organisations provide internet payment services, and 50 offer mobile payment services across Việt Nam. Payments via internet, mobile phones, and QR codes have seen widespread adoption, with 87.08% of adults holding bank accounts by the end of 2023. VNS
