Significant drop in fraud cases following nearly three months of biometric authentication implementation

DNHN - According to statistics from banks, the implementation of biometric authentication regulations has effectively deterred high-tech criminals from using personal accounts for money transfers.

At the Vietnam Card Day event held on September 26, Mr. Pham Anh Tuan, Director of the Payment Department, State Bank of Vietnam, stated that the implementation of biometric authentication regulations under Decision 2345, which rolled out on July 1, 2024, has made significant contributions in curbing online fraud and scams.

Mr. Pham Anh Tuan mentioned that as of today, September 26, approximately 38 million accounts have had their biometric data collected and verified.

“It can be said that almost all customers conducting transactions exceeding VND 10 million per time or VND 20 million per day have voluntarily registered their biometric information to verify the legitimate account holder. We want to emphasize that the goal of Decision 2345 is to ensure the legitimate account holder while using services related to accounts, cards, and wallets, thereby reducing the incidence of transferring money into rented or borrowed accounts used by fraudsters,” Mr. Pham Anh Tuan explained.

After two months of implementation, the State Bank of Vietnam recorded an average of over 25 million transactions per day, which is almost unchanged from the monthly average before July. This indicates that the implementation of Decision 2345 has not negatively impacted the growth of payments, particularly cashless transactions.

He also stated that reports from credit institutions show that the number of fraud cases involving customers losing money and accounts receiving fraudulent money has decreased significantly. Specifically, the number of such fraud cases in August dropped to 700, about 50% less than the average number of cases in the first seven months of 2024. The number of accounts receiving fraudulent money in August also decreased by approximately 72%, down to 682 accounts.

Notably, some institutions reported no fraud cases during August and early September.

Colonel Hoang Ngoc Bach, Head of Division 4 of the Cybersecurity and High-Tech Crime Prevention Department (A05) of the Ministry of Public Security, indicated that initial statistics from banks show that the biometric authentication regulations have been effective in limiting high-tech criminals from using personal accounts for money transfers.

However, Colonel Bach warned that since the State Bank began applying biometric authentication for personal accounts, fraudsters have been shifting tactics by enticing people to transfer money into business accounts.

Specifically, criminals are setting up shell companies and opening business accounts to deceive people into transferring money into these fraudulent accounts. Recently, many individuals have reported being scammed into purchasing beauty products, investing online, or receiving gifts, subsequently transferring money into these fraudulent business accounts.

According to the State Bank representative, a new circular replacing Circular 35 on online transaction safety is expected to be issued by October, replacing Decision 2345, enhancing the legal framework and compliance standards.

“With the January 2025 deadline approaching, I believe that banks and payment intermediaries are working vigorously to implement these new regulations,” stated the Payment Department Director.

Previously, when biometric authentication implementation was initiated, Lieutenant Colonel Trieu Manh Tung, Deputy Director of the Cybersecurity and High-Tech Crime Prevention Department, Ministry of Public Security, explained: Banks must invest in technology platforms to ensure that when users scan fingerprints or faces, they are scanning the live person. However, there are still risks, such as the usage of deepfake technology to bypass some biometric authentication checkpoints at banks.

Lieutenant Colonel Tung cautioned that there are hundreds to thousands of scam techniques. Whenever a new policy or event occurs, fraudsters devise new schemes to trap victims, sometimes more sophisticatedly, such as exploiting digital transformation policies or information updating policies to lure users into installing malware-laden apps or accessing malicious links that allow them to hijack phones and steal assets.

There are fraud rings with hundreds of members who treat scamming as a job, meticulously researching online fraud tactics to find victims. The most critical phase in any type of crime, particularly cybercrime, is the money flow. Therefore, if we cannot authenticate account information and the identity of individuals conducting transactions, payment activities inherently contain many risks for exploitation.

“Decision 2345/NHNN introduces technical measures to establish biometric authentication for customers making transactions over VND 10 million per instance or daily totals exceeding VND 20 million. This is a critical step that addresses foundational issues such as customer identification to cleanse their data, ensuring that users have real identification and legitimate accounts,” reaffirmed Lieutenant Colonel Tung.

Mai Anh