Accounts that bypass biometric authentication to commit fraud have appeared.

Mandatory biometrics and stricter procedures for opening personal accounts have prevented up to 50% of fraud cases. However, loopholes have emerged where people open business accounts and bypass biometric verification to facilitate fraudulent activities.

At the Smart Banking 2024 Conference and Exhibition, Deputy Governor of the State Bank of Vietnam, Pham Tien Dung, stated that the digitalization rate of the banking sector is very high with strong growth, playing a connecting role with other sectors and fields in the economy. The banking sector has connected and integrated with data from the Ministry of Public Security , telecommunications, etc.

However, the Deputy Governor noted that integration with multiple entities also poses risks related to security and operational disruption.

Although 38 million bank accounts have had their data cleaned, the number of fraud cases targeting individual customers has decreased significantly since the implementation of Decision 2345/QD-NHNN and Circular 17/2024/TT-NHNN. However, the Deputy Governor affirmed that no measure is completely and perfectly effective.

According to reports from credit institutions, after implementing biometric authentication, the number of fraud cases has decreased by up to 50% compared to before,” Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said in mid-October.

"Decision 2345 and Circular 17 have tightened regulations on opening personal accounts for individual customers. However, this has led to circumvention of regulations by opening corporate accounts and bypassing biometric authentication for fraudulent purposes," said Deputy Governor Pham Tien Dung.

Mr. Dung stated that in the coming period, the banking sector will focus more on the opening of business accounts to ensure the verification of the legal representative of the business. When conducting business transactions, especially large transactions, signatures are required to identify the person responsible, ensuring that the signatory can be traced in case of any problems.

At the same time, Deputy Governor Pham Tien Dung also suggested coordination with other ministries and agencies, because businesses are licensed by competent authorities. If the identity of the business owner cannot be determined, fraud will continue to occur not only in banks but in all sectors.

Most banks are now using eKYC biometric authentication technology to identify accounts and verify customer identities, thereby preventing fraud, scams, and information falsification.

However, there is currently a situation where high-tech criminals are using methods to circumvent biometric authentication, such as using business accounts or platforms like Facebook to "trap" customers.

According to Mr. Nguyen Viet Ha, Director of Information Security Planning at Techcombank , the bank is proactively working with IT companies, auditors, and business partners to equip itself with assessment frameworks to detect risks early, thereby providing solutions to better protect customer information and ensure secure authentication.

"Without continuously gathering information about the issues customers are facing, and without measures to protect customers, it is highly likely that hackers will exploit vulnerabilities to carry out fraud, scams, and financial attacks. Therefore, Techcombank is also applying other technologies and measures to manage customer data and ensure secure access," Mr. Nguyen Viet Ha shared.

The application of artificial intelligence (AI) has become a prominent trend for businesses globally, and in the banking sector in particular. According to Mr. Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banking Association, 85% of banks have established strategies for applying AI in developing new products and services, and more than 59% of their staff are using AI in their daily operations.

Banks' funding for generative AI (GenAI) is projected to reach $85 billion by 2030, a sharp increase from $6 billion in 2024, marking a more than 1,400% increase in investment. This strong investment trend clearly demonstrates the shift from traditional banks and digital banks to AI banks.

Source: https://vietnamnet.vn/xuat-appear-tai-khoan-lach-xac-thuc-sinh-trac-hoc-de-lua-dao-2337043.html