Hanoi (VNA) Biometric authentication that will be mandatory from July 1 in money transactions aims to increase the security of bank accounts and prevent financial fraud that is on the rise in Vietnam.
According to a decision by the State Bank of Vietnam (BEV), each online transaction worth more than 10 million VND (392.65 USD) or daily transactions exceeding 20 million VND will require biometric authentication.
Biometric authentication uses biological identifiers such as fingerprints, irises, voices and facial features, and is considered the most secure against fraud.
Pham Anh Tuan, director of BEV Payment Department, said that amid growing cashless payments, Vietnam has 182 million personal payment accounts, with more than 87 percent of adults owning at least one, adding that the number of QR code payments has skyrocketed recently.
Experts warned that traditional authentication methods using passwords and one-time passwords (OTPs) are not strong enough against cyberattacks. Meanwhile, they said, biometric security will be compared to data stored in the national identification database.
Therefore, the biometric solution will make it easier for service providers and the central bank to manage accounts and transactions, they noted.
In addition to limiting virtual bank accounts, this type of authentication will help law enforcement agencies track down criminals and recover money from cyber scams, said Vu Ngoc Son of the National Cybersecurity Association.
National banks have been sending their customers notifications and reminders to update their biometric registration in anticipation of the new rules.
According to Nguyen Van Giang, deputy director of the Department of Cyber Security and High-tech Crime Prevention (A05) under the Ministry of Public Security, in 2023, the total amount of money lost due to online scams was estimated to be around 314 million and 392 million dollars, a year-on-year increase of 1.5 times.
Up to 91% of these fraudulent activities were related to financial schemes, and 73% of mobile and social media users were frequently targeted by fraudulent messages and calls.
In this context, the Department has advised people to remain alert, avoid risky actions such as clicking on strange links and selling bank accounts, and to use multi-factor authentication./.
