Handling fraud and counterfeit risks: A big challenge in digital transformation

Vietnam Banks Association launches handbook on coordination against fraud and counterfeiting in digital transformation, enhancing consumer protection and banking reputation.

Mr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banks Association, said that handling risks in the field of fraud and counterfeiting is becoming increasingly complicated, especially in the context of credit institutions actively implementing digital transformation.

The above information was given by Mr. Hung at the meeting to deploy the Handbook on coordination of supporting risk handling for accounts/cards/payment acceptance units related to money transfer and payment transactions suspected of fraud, forgery, and scam on October 21.

Need timely coordination of banks

According to Dr. Nguyen Quoc Hung, fraud through accounts and cards has become more complex, sophisticated and has increased in frequency recently. Therefore, coordination in preventing fraud and scams in the field of accounts and cards is extremely important.

"This is a difficult task in the process of digital transformation of credit institutions. Handling fraud cases requires close coordination between banks," said Mr. Hung.

One important issue that Mr. Hung raised is that fraudulent money can move very quickly through different accounts, making tracing and blocking almost impossible without timely coordination between banks.

According to him, if there is no coordination between the sending bank and the receiving bank, by the time the customer reports to the police, all the money has been withdrawn.

In addition, he also mentioned the major challenges in implementing fraud risk handling procedures, when each bank has its own regulations and there is no consensus in how to handle incidents. Building a comprehensive and flexible coordination system is an urgent requirement in fraud prevention.

"We understand that when customers are tricked into transferring money, the direct responsibility does not belong to the bank. But we cannot be indifferent. If such incidents continue to happen, the reputation and position of the entire banking system will be affected first," said Mr. Hung.

Meeting scene. (Photo: Vietnam+)

Mr. Hoang Ngoc Bach (Department of Cyber ​​Security and High-Tech Crime Prevention, Ministry of Public Security ) also expressed his excitement about the launch of the coordination manual. He said that in the context of increasing high-tech crime, close coordination between banks, police agencies and management agencies is a key factor to effectively prevent fraud and scams.

"Only when banks, regulatory agencies and the police force truly work closely together, with a high sense of responsibility and determination, will the work of preventing financial fraud and scams be truly effective," Mr. Bach affirmed.

Requires determination of the entire credit system

Mr. Pham Anh Tuan, Director of the Payment Department of the State Bank, shared that the current situation of online fraud crimes in Vietnam is becoming increasingly complicated and there is a close connection between criminal groups.

According to Mr. Tuan, compliance with legal regulations in fraud prevention and suppression is essential, but building and implementing coordination processes between banks is even more difficult, requiring high determination from the entire system.

The handbook, which will be issued on September 30, 2025 and take effect after 30 days, will be the basis for banks, financial companies and payment institutions to cooperate with each other in handling suspected fraudulent transactions. This handbook stipulates the coordination process between relevant parties in handling accounts, cards or payment acceptance units related to fraudulent money transfer/payment transactions, in order to protect consumers and protect the image and reputation of the banking system.

Particularly in today’s electronic trading environment, the speed at which fraudulent transactions are processed is crucial. A fraudulent flow of money can be broken down and transferred through dozens of accounts in a matter of minutes, making tracing and blocking nearly impossible without instant coordination between banks.

Mr. Pham Anh Tuan, Director of the State Bank's Payment Department, spoke at the meeting. (Photo: Vietnam+)

At the meeting, delegates also mentioned the need to implement preventive measures from the account opening, card opening, e-wallet opening, to the inspection and monitoring process throughout the period of use. This not only helps protect consumers but also helps protect the national financial system, creating a solid foundation for the sustainable development of the banking industry.

The development and implementation of the Handbook is an important step forward in the fight against fraud. This is not only a tool to protect consumers but also a measure to help banks protect their reputation and brand in the national financial system. Close and timely coordination between banks, police agencies and management agencies will determine the success in preventing fraud and scams in the current digital age./.

Handbook on regulations on coordination and support in handling Accounts/Cards/Payment Accepting Units related to money transfer/payment transactions suspected of fraud or counterfeiting between Banks, Foreign Bank Branches, Finance Companies, and Payment Intermediaries.

The Handbook applies to money transfer/payment services via Accounts/Cards, between Banks, Foreign Bank Branches, Finance Companies, Payment Intermediaries including but not limited to connections via the NAPAS system, the Citad system of the State Bank and other connections of Member Organizations.

(Vietnam+)

Source: https://www.vietnamplus.vn/xu-ly-rui-ro-gian-lan-gia-mao-thach-thuc-lon-trong-chuyen-doi-so-post1071644.vnp