Warning about scams that exploit biometric data.
The implementation of biometrics is a policy of the State Bank of Vietnam (SBV) aimed at enhancing customer security and reducing fraud. However, fraudulent schemes are also rapidly evolving as a result.
16.6 million accounts have been matched.
According to the State Bank of Vietnam, currently 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 to 2023.
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.
Therefore, to protect customers using banking services, from July 1st, banks will require biometric verification for money transfers of 10 million VND or more. Deputy Governor of the State Bank of Vietnam, Pham Tien Dung, stated that implementing biometric verification is necessary, adding an extra layer of protection and increasing security. In cases where customers lose their documents and fraudsters bring them to the bank to impersonate the account holder, it will be difficult to commit fraud because facial biometrics can verify the identity of the person. Customers without chip-embedded citizen identification cards have been guided and assisted by banks when conducting transactions exceeding 10 million VND.
As of 5 PM on July 3rd, 16.6 million bank accounts had been checked and cross-referenced with data from the Ministry of Public Security to eliminate fake accounts, accounts created with forged documents, etc. Statistics show that in the first three days of July, the entire system processed an average of about 23 million transactions per day, of which over 1.9 million transactions exceeded 10 million VND, accounting for 8.2% of the total transaction value, higher than the average of June 2024. "Only over 8% of transactions required biometric authentication, while nearly 92% were normal transactions, so there was no congestion. Some localized congestion cases on the first day of implementation have been resolved, and by July 2nd-3rd, most transactions were running smoothly," Mr. Dung added.
Although the mandatory biometric verification requirement only started on July 1st, online scams have immediately emerged where individuals exploit customers' difficulties in updating their biometric information to steal data. Several banks, such as Vietcombank and Agribank, have warned customers about individuals impersonating bank employees who contact them to assist with updating information, then request personal information, service details, or send fake links to commit fraud and steal assets.
Biometrics for customer protection
Lieutenant Colonel Trieu Manh Tung, Deputy Director of the Cyber Security and High-Tech Crime Prevention Department of the Ministry of Public Security, stated that cybersecurity risks in the current context are very high. If account opening and transaction procedures are not properly managed, any criminal could exploit the system. According to Lieutenant Colonel Tung, defrauding and stealing money from bank accounts has become a "money-making profession" for many individuals. Fraudsters are becoming increasingly professional, with organizations sometimes employing hundreds of people working in offices with clearly defined roles: some groups specialize in researching scenarios; others are trained to execute fraud scenarios and adapt to situations after a few months of apprenticeship; and some handle the flow of money… Fraudsters create their scenarios very quickly. Specifically, since the banking sector only started implementing biometric authentication on July 1st, a new type of scam has immediately emerged, with fraudsters impersonating bank officials to guide people through the biometric authentication process. These impersonators are becoming increasingly professional and skilled.
Previously, fraudsters impersonating police officers or inspectors were easily detected because they used many incorrect concepts and commands. However, nowadays, all commands and specialized terminology are used almost entirely accurately. The handling of funds is also very quick. After the fraudulent money arrives in the recipient's account (which is usually an account not registered in their name, purchased from someone else), the money spreads in all directions within seconds.
For example, in 2023, the Cyber Security and High-Tech Crime Prevention Department (Ministry of Public Security) coordinated with the Quang Binh Provincial Police to uncover an online fraud ring involving 300 individuals. Therefore, according to Mr. Tung, the banking sector's requirement for biometric authentication for money transfers exceeding 10 million VND per transaction or total daily transactions exceeding 20 million VND is extremely important.
From the regulatory perspective, the State Bank of Vietnam (SBV) stated that in the coming period, in order to promote and enhance the security and safety of banking services in cyberspace, the SBV will continue to focus on the following key tasks: Investing in and improving the information technology infrastructure of credit institutions and payment intermediaries; simultaneously upgrading and developing 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 connectivity to better meet the diverse needs of banking services...
The police are warning about 4 common scam tactics.
Firstly, impersonating reputable organizations, individuals, relatives, banks, etc., accounts for 50% of fraudulent activities and methods.
Secondly, scammers are soliciting investments in online businesses. Recently, fraudsters have been encouraging investment in gold trading platforms and international stock exchanges. They lure investors by promising a few wins, with account balances increasing several times, but preventing withdrawals. To withdraw money, investors are required to deposit more. In this way, some investors have lost as much as 20-30 billion VND.
Thirdly, they use sensitive information to extort money, primarily through emotional manipulation, luring victims into sending sensitive information, videos, and images, then using these sensitive clips to threaten and blackmail them. Recently, many people, including those working in government agencies, have fallen victim to this scam. This type of fraud is highly professional, organized, and follows a clear script.
Fourthly, they trick people into installing applications containing malicious code to gain unauthorized access to accounts.
