Vietnam’s banking anti-fraud warning system has flagged more than 1.3 million suspicious transactions and helped users avoid transferring over VND4.5 trillion ($177 million) to potentially fraudulent accounts, but participation among banks remains strikingly limited.

Speaking at a press conference announcing the “Digital Finance Day 2026” program on May 26, Pham Anh Tuan, director general of the Payment Department under the State Bank of Vietnam (SBV), revealed new details about the country’s efforts to combat fraud and scams in digital banking.

According to Tuan, the SBV’s SIMO system - short for the Information System for Supporting Management, Monitoring and Prevention of Payment Fraud Risks - has collected and consolidated bank accounts identified by financial institutions as suspicious for fraud or scam-related activities.

When customers attempt to transfer money to accounts flagged within the SIMO database, the system automatically generates a warning notification before the transaction is completed.

Users are then free to decide whether to continue the transfer, as the system only issues alerts rather than blocking transactions outright.

By mid-May, SIMO had already issued warnings for more than 1.3 million transactions, helping customers halt transfers totaling over VND4.5 trillion ($177 million).

Despite the results, participation in the system remains relatively low.

As of May 25, only 12 banks had integrated the SIMO warning service for customers, out of nearly 50 banks currently operating in Vietnam.

The remaining institutions have yet to register for the anti-fraud alert system.

Digital payments bring rising cybercrime risks

Pham Anh Tuan said the rapid expansion of digital payments inevitably comes with growing cybersecurity threats and increasingly sophisticated high-tech financial crimes.

The SBV recently issued Circular 77/2025 amending Circular 50/2024 on safety and security requirements for online banking services.

The updated regulations introduce stricter cybersecurity standards, including provisions allowing banks to suspend online banking services if banking apps are installed on devices deemed to pose security risks.

However, Tuan acknowledged that technological solutions alone cannot completely eliminate fraud.

“These measures can only minimize risks, not guarantee absolute protection,” he said.

He emphasized that public education and financial literacy remain critical in protecting consumers.

“Some users still provide OTP codes to scammers after being psychologically manipulated, leading to the theft of money from their bank accounts and savings deposits,” he noted.

Vietnam pushes broader digital finance goals

Under the theme “Smart payments driving digital finance,” this year’s Digital Finance Day program aims not only to promote cashless payments but also to advance broader financial inclusion goals.

According to SBV data, Vietnam recorded more than 25.2 billion non-cash payment transactions in 2025 alone, with a total value exceeding VND362 quadrillion ($14.2 trillion).

Officials described the figures as evidence of the explosive growth of digital payments nationwide.

The central bank said it continues to prioritize improvements to the legal framework and the development of national payment infrastructure as key drivers supporting Vietnam’s broader macroeconomic and digital finance objectives.

Tran Chung