Face authentication when transferring money, is there a risk of losing money in the account?

Customers perform facial authentication at the counter

Which transactions require facial authentication?

According to Decision 2345/QD-NHNN, from July 1, money transfers of 10 million VND/transaction or total transaction value of over 20 million VND/day will require biometric facial authentication.

In addition, according to Clause 2 of Decision 2345, individual customers must be biometrically identified before making their first transaction using a banking application (Mobile Banking) or before making a transaction on a device other than the device they last made the transaction on.

Regarding the above decision, Deputy Governor of the State Bank of Vietnam (SBV) Pham Tien Dung said that with the application of Decision 2345, when making transactions, faces must be matched and authenticated, so criminals cannot take money.

The important thing when stealing information is that criminals often install it on another device to carry out the theft. But banks require biometric authentication.

Therefore, criminals cannot install it on other computers to steal money. On the other hand, when making normal transactions, the account renter or the account lessor cannot use the transaction account.

Explaining why the State Bank chose the 10 million VND threshold, Mr. Dung shared that transactions over 10 million VND only account for 11% of the total transaction volume. The total number of people with transactions over 20 million VND/day is less than 1%. Therefore, it is impossible to require people to perform facial authentication just to pay for a bottle of water or a bus ticket.

The Deputy Governor emphasized: “It is not that when making a transaction of 20 million VND, but when making a transaction of 100,000 VND after a transaction of 20 million VND, we have to do biometrics, but at the level of 20 million VND, we authenticate and then we do not have to authenticate again, until the next 20 million VND. The principle is not to interrupt the customer experience.”

With the above regulation, accounts that are not in the owner's name or opened with fake documents will be eliminated.

Clarifying this regulation, Mr. Pham Anh Tuan, Director of the Payment Department - State Bank of Vietnam, said that the regulation only applies to normal money transfer transactions, not to payment transactions where the recipient is the clear destination.

“Here I want to clarify that it is a money transfer transaction,” Mr. Pham Anh Tuan emphasized. All payment transactions that are authenticated by payment acceptance units, credit institutions (CIs), and payment intermediaries do not require biometric authentication. For example, paying electricity, water, taxes, transportation fees, etc., all transactions with a clear destination do not require biometric authentication.

Data cleaning, anti-fraud in online transactions

Recently, the State Bank of Vietnam issued document No. 4932/NHNN-TT to the People's Committees of provinces and cities to coordinate in preventing the buying and selling of student accounts.

In fact, recently, in many localities, criminals have lured and enticed students who have been granted citizen identification cards to open payment accounts and paid them to open them.

The subject provides students with phones with available SIM cards to register for opening payment accounts and Internet Banking and SMS Banking services.

Then, the subjects asked the students to return the phones, provide the above information, login password, authentication password (OTP)... these subjects also collected biometric data (face) of the students to serve the customer's identity verification when requested.

These accounts are then often used for illegal purposes such as money laundering, tax evasion, property fraud, terrorist financing, etc.

The document of the State Bank clearly states that prohibited acts are specifically regulated in Article 6 of Decree 101/2012/ND-CP dated November 22, 2012 of the Government : providing dishonest information in the process of providing and using payment services, payment intermediary services; opening or maintaining anonymous or impersonated payment accounts); Decree No. 52/2024/ND-CP dated May 15, 2024, effective from July 1, 2024, replaces Decree 101/2012/ND-CP, which adds provisions on prohibited acts in Clauses 3 and 5, Article 8, including: providing dishonest information related to the provision or use of payment services, payment intermediary services...; opening or maintaining anonymous or impersonated payment accounts and e-wallets; Buying, selling, renting, leasing, borrowing, lending payment accounts, e-wallets; renting, leasing, buying, selling, opening bank cards (except for anonymous prepaid cards); stealing, colluding to steal, buying, selling payment account information, bank card information, e-wallet information; Point h, Clause 2, Article 5 of Circular 23/2014/TT-NHNN (amended and supplemented) stipulates that payment account holders are not allowed to rent or lend their payment accounts.

The above violations will be subject to administrative sanctions according to the provisions of Clauses 5 and 6, Article 26 of Decree 88/ND-CP dated November 14, 2019 (amended and supplemented).

Specifically, a fine of 40 million to 50 million VND shall be imposed for the following acts: renting, leasing, borrowing, lending payment accounts, buying and selling payment account information with a quantity of 1 payment account to less than 10 payment accounts that is not yet serious enough to warrant criminal prosecution; a fine of 50 million to 100 million VND shall be imposed for the following acts: renting, leasing, borrowing, lending payment accounts, buying and selling payment account information with a quantity of 10 payment accounts or more that is not yet serious enough to warrant criminal prosecution.

Recently, the State Bank of Vietnam has regularly issued documents directing the review and inspection of all account records that do not match identity documents, researched solutions to use national population data and exploit data on chip-embedded ID cards.

According to Mr. Pham Anh Tuan, Director of the Payment Department (SBV), by the end of 2023, Vietnam had more than 182 million payment accounts of individual customers, equivalent to 87.08% of adults having bank accounts; many banks have had over 95% of transactions processed on digital channels. In addition, the number of payment transactions via mobile devices (Mobile) and QR codes has also grown rapidly in recent times.

TB (according to Vietnamnet)

Source: https://baohaiduong.vn/xac-thuc-khuon-mat-khi-chuyen-tien-con-nguy-co-mat-tien-trong-tai-khoan-385488.html