Biometric authentication helps ensure transaction security and prevent fraud.

From July 1st, citizens will need to verify their biometric data linked to their chip-embedded citizen ID card when transferring more than 10 million VND per transaction or more than 20 million VND per day via banking apps.

According to Decision No. 2345/QD-NHNN of the State Bank of Vietnam , from July 1, 2024, bank customers conducting certain online transactions will be required to authenticate using facial biometrics that match the data stored in the chip of their citizen identification card (CCCD). This authentication method aims to ensure transaction security for customers and prevent fraud and theft of assets.

Decision No. 2345 stipulates that biometric authentication is required in the following cases: money transfer transactions exceeding 10 million VND; transactions with a total cumulative daily transfer amount exceeding 20 million VND; first-time transactions using the Mobile Banking application or transactions performed on a device other than the one used for the most recent Mobile Banking transaction...

According to Decision No. 2345, biometric authentication creates additional layers of security. Simply put, facial authentication must be linked to the account holder's bank account on the phone, and only that authenticated face can transfer money.

Many users have reported using their faces to unlock their phones, activating face recognition (also known as Face ID) when logging into bank accounts instead of re-entering passwords, and even using their faces for authentication when transferring money. However, according to Mr. Nguyen Hung, General Director of Tien Phong Bank ( TPBank ), this is insufficient because it only registers the face with the phone. This means anyone authorized to access the phone, such as spouses, children, etc., can access the user's bank account. This is one of the reasons why users can lose money when their phone access is compromised or they click on suspicious links.

By simply taking a photo of their chip-embedded citizen identification card (CCCD) using a banking app, placing the CCCD chip near their phone to scan data, and taking a photo for facial verification, citizens can complete biometric authentication on their banking apps. This helps people avoid having their bank accounts accessed through suspicious links or having their phones compromised.

Mr. Nguyen Van Huong, Deputy General Director of Orient Commercial Bank (OCB ), stated: "Through biometrics, it is almost impossible for criminals to impersonate customers. Every transaction of significant value must be authenticated; otherwise, if it is not the customer making the transaction, the money cannot be transferred."

In 2023, there were nearly 16,000 reports of online fraud, with almost 10 trillion VND (approximately $2.75 billion) being stolen. When victims transfer money to scammers, the funds immediately flow continuously between bank accounts, making it very difficult to trace the flow. However, when biometric verification is performed, the fraudulent funds are blocked.

Lieutenant Colonel Trieu Manh Tung - Deputy Director of the Cyber Security and High-Tech Crime Prevention Department, Ministry of Public Security - stated: "If you are not the one who opened the account, you will not be able to transfer money, which will also reduce the use of unofficial accounts. Thanks to this, we can also prevent fraudsters from buying other people's bank accounts to use for transferring fraudulent funds."

Biometric authentication during money transfers helps prevent funds from being transferred out of an account. However, a current reality is that scammers impersonate police officers, tax officials, court officials, or other law enforcement agencies, making phone calls and manipulating people into transferring money. This means that even after authentication, fraud and money transfers can still occur. Therefore, banks and the Ministry of Public Security have now established a system to provide early warnings to people as soon as they enter their account details for money transfers.

Mr. Do Huy Phuong - Deputy Director of the Digital Banking Division, Military Bank (MB) - said: "The bank has partnered with the Cyber Security and High-Tech Crime Prevention Department (A05) under the Ministry of Public Security, which has a list of fraudulent accounts. This list clearly shows the recipient's account as being under suspicion of fraud, verified by the Ministry of Public Security and continuously updated, allowing us to immediately stop transfers to avoid potential risks."

At the conference summarizing one year of implementation and addressing bottlenecks for Project 06, the Prime Minister requested ministries, sectors, and localities to uphold a high sense of responsibility, "not saying no, not saying it's difficult, not saying yes but not doing it," and to urgently complete the institutional framework serving the development of population data; connecting and sharing data in particular and national digital transformation in general; while simultaneously promoting the simplification and restructuring of administrative procedures to improve the quantity and quality of public services provided to the people.

Currently, 60 credit institutions have implemented customer verification via chip-embedded citizen identification cards at the counter, and 49 credit institutions have implemented verification of chip-embedded citizen identification cards via mobile applications.

The State Bank of Vietnam has issued guidelines for implementing Decision 2345 to credit institutions, branches of foreign banks, and payment intermediary service providers. Therefore, if people cannot verify their identity themselves via phone, they can go to the bank for assistance. In unavoidable circumstances, bank staff will provide assistance at home. People should be extremely cautious of calls offering assistance from strangers, as these could be scams.

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