Mandatory biometric verifications to be expanded

From January 1, all bank account holders in Vietnam are required to complete biometric authentication and update valid identification documents to avoid disruptions in payment transactions, as directed by the State Bank of Vietnam (SBV).

Mandatory biometric verifications to be expanded, Source: Vietcombank

According to Deputy Governor Pham Tien Dung, banks continue to maintain all other security measures to ensure customer safety. “Cybercriminals are becoming increasingly sophisticated, so technology must continuously advance to better protect customer assets,” he said.

Dung also acknowledged the issue of regulatory evasion, where some fraudsters exploit corporate accounts to bypass biometric authentication. “In the future, the banking sector will focus more on the process of opening business accounts, ensuring the verification of legal representatives. For large corporate transactions, signatures will be required to identify the responsible party, enabling traceability when issues arise,” he added.

At a seminar on the topic hosted by the SBV at the end of November, Nguyen Thi Thu, deputy director of the Payment Department at the central bank, said the SBV had addressed issues in the payment sector, with 90 per cent of transactions now conducted via digital channels. This initiative was supported by early inter-agency collaboration programmes under the Ministry of Public Security (MoPS), aiming to verify account ownership.

“Despite highly positive results since the implementation of the new regulations, challenges remain, such as fraudsters shifting to the use of corporate accounts registered under fake or inactive businesses, which are difficult to control,” said Thu.

“As a response, the SBV plans to mandate biometric authentication for businesses, requiring financial institutions to verify legal representatives of companies before opening accounts. In addition, the SBV will continue to collaborate with units under the MoPS to strengthen inspection and supervision within the banking system,” she added.

Nguyen Huu Cuong, representative of the Department of Cybersecurity and High-Tech Crime Prevention under the MoPS, emphasised the importance of collaboration both across sectors and within the banking industry.

“When money flows are effectively controlled, a large proportion of fraudulent activities can be eliminated, as this disrupts their financial networks,” he said. “The SBV and the MoPS have consistently worked together, issuing policies aimed at effectively preventing digital fraud. These have proven essential in combating high-tech crimes in the banking sector.”

However, he acknowledged that crime prevention was a long and challenging process, compounded by uneven public awareness. “High-tech crimes involving digital fraud and asset theft are a global issue, not confined to Vietnam. Rapidly evolving methods and tactics continue to pose significant…