Since the introduction of mandatory biometric authentication on July 1, 2024, the number of fraud-related accounts in Vietnam has dropped by 72%, with only 682 accounts remaining. Similarly, the number of fraud incidents related to money transfers has halved, with just 700 cases reported since July.

At a press conference on September 26 to announce the Vietnam Card Day 2024, Pham Anh Tuan, Director of the Payment Department at the State Bank of Vietnam (SBV), reported that by mid-September 2024, approximately 38 million bank accounts had their biometric data collected, including nearly 4 million e-wallets.

Tuan noted that most customers making transactions over 10 million VND per transaction, or exceeding 20 million VND per day in total transactions, have registered their biometric information for account verification purposes, as required by Decision 2345 of the SBV. 

"The goal of Decision 2345 is to ensure that accounts are authenticated and belong to the correct account holders, whether they are using bank accounts, cards, or e-wallets. This helps prevent fraudsters from using non-authentic accounts that are rented, bought, or borrowed from others," Tuan stated.

Following the implementation of this measure, the average number of daily transactions has remained stable at over 25 million, comparable to figures before July 1, 2024.

“Decision 2345 has proven highly effective, with fraud incidents dropping to 700, a 50% reduction, and fraud-related accounts shrinking by 72% to just 682 accounts,” Tuan shared.

This reduction highlights the positive impact of the decision in curbing payment-related fraud.

Tuan expressed hope that payment service providers and intermediaries will continue to collect biometric data and verify it against the biometric information stored in citizens' chip-based identity cards (CCCDs). These efforts align with SBV regulations outlined in Circular 17 (on opening and using payment accounts), Circular 18 (on card activities), and Circular 40 (on intermediary payment activities).

As of January 1, 2025, individual customers whose biometric data has not been collected by financial institutions or intermediaries will only be able to transfer money in person at bank counters.

“With the deadline approaching, financial institutions and payment intermediaries are working swiftly to implement this measure,” Tuan emphasized.

In October, SBV will issue a new circular to replace Circular 35, which governs the security of online transactions. This circular will elevate the legal standing of Decision 2345 within Vietnam’s regulatory framework.

However, Tuan clarified that not all transactions require biometric authentication. Nevertheless, having this option strengthens the verification process, ensuring that customers using electronic payment services are indeed the rightful account holders.

“We want to encourage customers to request biometric authentication checks at any time to protect their rights and help prevent fraud in financial transactions,” Tuan added.

PV