The State Bank of Vietnam (SBV) has announced that biometric authentication has become mandatory for certain online transactions starting July 1, 2024. The measure is part of an effort to bolster security amidst the increasing prevalence of cashless payments. Any single online transaction exceeding VND10 million (approximately USD $392.65) or daily transactions surpassing VND20 million will require biometric verification.
The Bank is pursuing authentication methods that are more secure than traditional password-based systems and one-time passwords (OTPs), which have been deemed vulnerable to cyberattacks. The biometric data will be matched with information stored in the national ID database, thereby enhancing the security of bank accounts and preventing financial fraud.
Pham Anh Tuan, Director General of the SBV’s Payment Department, highlighted the widespread use of personal payment accounts in Vietnam, noting that over 87 percent of adults own at least one account. The use of QR codes for payments has also surged recently.
Experts have pointed out that the new biometric requirements will aid in managing accounts and transactions more effectively, as well as in tracing and recovering money from cyber scams.
Vu Ngoc Son from the National Cybersecurity Association mentioned that biometric authentication could limit the use of virtual bank accounts and aid law enforcement in combating cybercrime. Domestic banks are already preparing for the new regulations by notifying and reminding customers to update their biometric registration.
In 2023, the total financial loss due to online scams in Vietnam was estimated to be around VND8-10 trillion, with 91 percent of these frauds linked to financial schemes. Major General Nguyen Van Giang, Deputy Director of the Department of Cyber Security and High-Tech Crime Prevention (A05) under the Ministry of Public Security, has urged the public to remain vigilant against scams and to utilise multi-factor authentication to safeguard their financial information.
