Protecting banking customers through biometric authentication.

In his opening remarks at the workshop, Deputy Governor Pham Tien Dung affirmed that, under the direction and guidance of the Government , the banking sector has made continuous efforts and closely coordinated with relevant ministries and sectors in the digital transformation process, achieving many results in key pillars: transforming perceptions, perfecting institutions, upgrading infrastructure, applying and exploiting data, and developing digital banking models; along with ensuring security and safety;...

To date, over 87% of adults have bank payment accounts, and many banks have processed over 95% of their transactions through digital channels. Non-cash payments have grown strongly, especially the number of mobile and QR code transactions, which averaged over 100% per year from 2017-2023.

Banking technology infrastructure is regularly invested in, upgraded, and developed to ensure continuous, smooth, and secure operation; the interbank electronic payment system processes an average of 830 trillion VND/day (equivalent to 40 billion USD), and the electronic financial switching and clearing system processes an average of 20-25 million transactions/day.

The banking sector has closely coordinated with the Ministry of Public Security in crime prevention and control, and in particular, has pioneered the effective implementation of tasks under Project 06/QD-TTg on the application of population data to serve data cleaning, accurate identification/verification of customer information, support consumer lending activities on electronic channels, electronic guarantees, and contribute to ensuring the safety of banking operations.

However, alongside the conveniences and benefits that online banking products and services offer, the banking industry also faces risks and challenges related to security and confidentiality, including the threat of cyberattacks, the use of high technology for fraud and theft of people's money and bank accounts, and increasingly sophisticated and complex schemes.

To mitigate and reduce information security risks in online banking operations, the banking sector has proactively implemented key solutions, including: improving mechanisms, policies, and implementation guidelines; deploying technological solutions and coordination mechanisms; raising awareness and warning about fraud prevention; and coordinating with relevant agencies in combating online fraud.

Notably, on December 18, 2023, the Governor of the State Bank of Vietnam issued Decision No. 2345/QD-NHNN on the implementation of safety and security solutions in online payments and bank card payments (Decision 2345), effective from July 1, 2024.

According to Decision No. 2345/QD-NHNN, from July 1, 2024, electronic transactions by individuals with a value exceeding VND 10 million or a total daily payment value exceeding VND 20 million must apply one of the biometric authentication methods.

Implementing this decision contributes to ensuring that online payment transactions are only carried out by the account holder, thereby enhancing the security and confidentiality of online payment transactions, minimizing the risk of fraud and scams in online payment transactions, and preventing cases of renting, borrowing, buying, or selling payment accounts and e-wallets for illegal purposes.

This is also one of the solutions that contributes to protecting customers using banking services. According to statistics from banks, after 3 days of implementation (from July 1, 2024), transactions have basically been running smoothly.

According to Deputy Governor of the State Bank of Vietnam Pham Tien Dung, in the coming period, in order to promote and strengthen the security and confidentiality of banking services in cyberspace in accordance with the policies of the Party and Government, and to contribute to protecting customers using financial and banking services, the State Bank of Vietnam will continue to focus on the following key tasks:

Firstly, continue to research, refine, and promptly issue documents and circulars to replace, amend, and supplement regulations on safety and security for providing internet banking services…; effectively implement Decision No. 2345/QD-NHNN to ensure safety and security in payment transactions in particular and the use of banking services in general.

Secondly, continue investing in improving the information technology infrastructure of credit institutions and payment intermediaries; at the same time, upgrade and develop payment infrastructure to ensure continuous, smooth, safe operation, seamless and continuous connection with other sectors (such as public services, healthcare, education, e-commerce, etc.) and cross-border payment connections to better meet the diverse and rapidly increasing banking service needs of organizations and individuals in the economy.

Thirdly, continue to coordinate with the Ministry of Public Security to effectively implement Project 06, focusing on utilizing information from chip-embedded citizen identification cards and VneID accounts to accurately identify and verify customer information, and to coordinate and support the provision of banking products and services in a convenient and secure manner, ensuring the prevention of risks and crimes that exploit payment services for fraudulent purposes.

Fourth, strengthen information security and safety in payment and banking activities, coordinate with functional units in preventing, investigating, and handling high-tech crimes; protect the legitimate rights and interests of customers…

Fifth, continue to promote communication and financial education to enhance public knowledge and skills; continue to innovate and diversify forms of expression, applying Industry 4.0 technology and modern media; targeting people in rural areas, remote areas, young people, students, etc.

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