Ensuring security and safety in cashless payments

The situation of high-tech crimes in the field of non-cash payments is becoming more and more complicated, causing risks and consequences such as stealing customer information, stealing money in e-wallet accounts... This situation poses many challenges for the management and assurance of security and safety in the payment field. Regarding this content, Quang Tri Newspaper reporter interviewed Director of the State Bank Branch of Quang Tri Province NGUYEN DUC DONG.

-Sir, currently, customers are interested in non-cash payment methods. Could you please tell us about the growth of these payment methods in the province?

- Developing non-cash payments has always been one of the priorities of the Government and the State Bank of Vietnam (SBV) in realizing the national goal of universalizing comprehensive finance and implementing the National Digital Transformation Program. Following the policies and orientations of the Party and the Government on this issue, the banking industry has achieved many remarkable results, meeting the need for smooth and safe payments for organizations and individuals in the economy .

The number of customers opening and using payment accounts has continuously increased over the years. The whole province has 705,759 active personal accounts (an increase of 40% compared to the end of 2022). More than 69% of adults have payment accounts, of which opening accounts using eKYC method increased by 114% compared to the end of 2022. Bank card services are developing, many credit institutions (CIs) have added and integrated additional bank card features, allowing use for payment and services at other suppliers. The whole province has more than 769,000 cards in circulation (an increase of 32% compared to the end of 2022).

Credit institutions always focus on improving service quality, creating convenience for customers through the development of quantity, quality and scale of the network of automatic transaction machines (ATMs), card acceptance devices at points of sale (swiping cards via POS machines). To date, the whole province has 115 ATMs, including 10 multi-function ATMs (allowing customers to withdraw, deposit money, and deposit savings directly at the machine 24/7); 762 POS machines (an increase of more than 10% compared to 2022).

Ensuring security and safety in cashless payments

Making cashless payments at a store in Dong Ha City - Photo: TU LINH

There are more than 21,000 QR code payment acceptance points (an increase of 129% compared to 2022) located at businesses, distribution facilities/chains, retail stores, restaurants, hotels, medical facilities, hospitals, schools... The QR code network covers almost all districts, towns and cities. Payment via mobile banking with QR code scanning method has grown very strongly because of its convenience (an increase of 468% in quantity and 731% in value compared to 2022 (higher than the national average value of 471.13%).

Payments via POS card acceptance devices increased by 99% in quantity and 67% in value compared to 2022. In particular, money deposit transactions via multi-function machines such as CDM and CRM in the area reached 134,989 items, equivalent to a value of more than VND 1,018 billion. Money transfers via internet banking, mobile banking, and POS tended to increase in both quantity and value (up 28% in quantity and 23% in value compared to 2022). The proportion of digital payments compared to total means of payment in the area reached nearly 80%.

- Could you tell us about the difficulties encountered in ensuring security and safety for customers with cashless payments?

- Along with the promotion of cashless payments, online fraud, technology crimes, cyber crimes attacking the system and cashless payment activities are increasing on a global and national scale, without boundaries, and without exception for customers in Quang Tri province.

Fraud occurs in many ways and sophisticated tricks to steal money from customers' accounts. Subjects actively commit fraud, steal customers' account information (login name, authentication code...) through social networks such as Facebook, Zalo, Instagram...; or buy, sell, rent, borrow payment accounts to conduct transactions for illegal purposes, money laundering, tax evasion, fraud, scam...

Some common forms of fraud today that customers need to pay attention to avoid to ensure asset safety.

Firstly, bad guys impersonate police, prosecutors, tax, social insurance agencies... to ask account and card owners to install fake applications on their phones. Then, they use technology to make money transfers to appropriate money.

Second, bad guys recruit online sales collaborators, develop orders, call for stock investment... After the account and card owners transfer money, the subjects appropriate it, transfer it abroad through virtual money or disperse it through many other accounts, making it difficult to trace the money flow.

Third, bad guys set up websites, impersonating employees of banks and financial companies, posting advertisements for loans with quick and simple procedures... but asking for fees to appropriate assets. Fourth, bad guys use new tricks of AI technology to fake faces and voices and then contact relatives and friends to ask for money transfers.

In addition, the subjects also impersonate services to recover defrauded money or set up "ghost" businesses, open bank accounts to receive money for stock investment... then appropriate the money.

The prevention and handling of spam messages, spam SIM cards, and "fake accounts" are not yet thorough, the situation of revealing and leaking customer information and data, and selling personal information also creates loopholes for bad guys to take advantage of. Fraudsters organize the purchase of pre-activated SIM cards, hire people to open bank accounts using the above phone numbers. When they trick victims into transferring money to this account, they quickly withdraw or transfer it to many other accounts, making it very difficult for the police to track and recover the money.

In addition, to ensure the security, safety and confidentiality of customer data, the synchronization of relevant legal regulations on electronic transactions, signatures and electronic documents, it is necessary to accelerate the development of population data applications, electronic identification and authentication, data sharing and customer information security for digital payments, this is extremely urgent content.

-In reality, there have been many violations and frauds in the banking sector caused by bad actors. So how is the coordination to enhance security and safety in non-cash payment activities in the area being carried out, sir?

- In addition to perfecting the legal framework, mechanisms and policies to promote the development of non-cash payments, it is also necessary to control risks and ensure security and safety for digital banking activities. This is a very important issue that is always of concern to the State Bank at all levels. On January 29, 2024, the State Bank issued Official Dispatch No. 648/NHNN-TT on strengthening risk management measures for opening and using payment accounts and e-wallets. Previously, on January 15, 2024, the State Bank issued Directive No. 02/CT-NHNN on promoting digital transformation and ensuring information security and safety in banking activities.

In the province, the State Bank of Vietnam has proactively monitored and closely grasped the situation of non-cash payment activities; directed credit institutions to focus on ensuring information and payment security and safety; and strengthened risk management measures for opening and using payment accounts.

Closely coordinate with relevant departments, agencies and sectors to report, advise and promptly inform the Provincial People's Committee and the Governor of the State Bank in implementing tasks. Strengthen coordination with relevant agencies and organizations in preventing and combating crimes related to payment activities, as well as preventing the abuse of payment services and payment intermediary services for illegal transactions; update information and promptly warn about new methods and tricks of criminals to payment service providers as well as customers to have effective prevention and combat measures.

The Provincial Branch of the State Bank has closely coordinated and exchanged with the Economic Police Department, the Economic Security Department, the Cyber Security and High-Tech Crime Prevention Department of the Provincial Police to grasp specific and timely information on issues related to security and safety of the payment system and e-wallets; speed up the implementation of Project 06 on developing applications of population data, identification and electronic authentication to serve socio-economic development in the province to ensure consumer rights.

Require credit institutions to strengthen the monitoring of payment system data, and at the same time check and review all processes, procedures, and regulations on records and contracts for opening and using payment accounts and bank cards to amend, supplement, and complete internal regulations to ensure safety, security of customer information, and compliance with legal regulations. Focus on training and instructing bank officers and employees on knowledge and skills to identify genuine and fake identification documents; conduct 100% post-inspection of payment accounts and bank cards opened using the eKYC method.

Strengthen coordination with press and media agencies to promptly post notices, instructions, and warnings to customers with full information about prohibited acts and acts that are not allowed to be performed during the process of opening and using payment accounts in various forms to improve risk prevention for customers.

Thank you!

Tu Linh (performed)

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