Biometric authentication helps secure transactions and prevent fraud

From July 1, people need to authenticate biometrics linked to their chip-embedded citizen identification cards when transferring money via banking applications over VND10 million/transaction or over VND20 million/day.

According to Decision No. 2345/QD-NHNN of the State Bank of Vietnam, from July 1, 2024, bank customers when conducting certain online transactions will be required to authenticate using facial biometrics that match the data stored in the chip of the citizen identification card (CCCD). This authentication method aims to ensure transaction safety for customers, avoiding fraud and property appropriation by criminals.

Decision No. 2345 stipulates cases requiring biometric authentication including: money transfer transactions over 10 million VND; transactions with a total cumulative money transfer amount in a day over 20 million VND; first time performing a transaction using the Mobile Banking application or performing a transaction on a different device from the device that performed the last Mobile Banking transaction...

Biometric authentication according to Decision No. 2345 is to create other layers of security, simply put, facial authentication must be linked to the owner's bank account in the phone and only that authenticated face can transfer money.

Many users said that they used their faces to unlock their phones, when logging into their bank accounts on their phones, they also activated the face unlock feature (also known as Face ID) instead of retyping the password, even allowing the use of faces to authenticate when transferring money. However, according to Mr. Nguyen Hung - General Director of Tien Phong Bank (TPBank), this is not enough because it is only registering the face with the phone, meaning that anyone who is allowed to access the phone such as wife, husband, children..., has the right to access the user's bank account. This is one of the reasons why users can lose money when their phone rights are taken over or when they click on strange links.

Just take a photo of the CCCD with chip from the banking application, place the CCCD chip near the phone to scan the data, take a photo to authenticate the face, and people can complete the biometric authentication on the banking application. This helps people avoid having their bank accounts hacked when clicking on strange links or having their phones hijacked.

Mr. Nguyen Van Huong - Deputy General Director of Orient Commercial Bank (OCB) - said: "Through biometrics, it is almost impossible for criminals to impersonate customers. Every transaction of large value must be authenticated, otherwise the customer cannot transfer money."

In 2023, there were nearly 16,000 reports of online fraud, nearly 10,000 billion VND was appropriated. When the victim transfers money to the scammer, the money flow immediately flows continuously between bank accounts, so it is very difficult to trace the money flow. When their biometrics are authenticated, the fraudulent money flow will be blocked.

Lieutenant Colonel Trieu Manh Tung - Deputy Director of the Department of Cyber ​​Security and High-Tech Crime Prevention, Ministry of Public Security - said: "If you are not the one who opened the account, you will not be able to transfer money, and the use of unofficial accounts will also be reduced. Thanks to that, we can also prevent the situation where scammers buy other people's bank accounts to use to circulate fraudulent money flows."

Biometric authentication when transferring money helps prevent money from being transferred out of the account. However, the reality is that scammers impersonate police officers, tax officials, courts or many other authorities and call, manipulating people's psychology to make them follow and transfer money. This means that after authentication, they can still be scammed and have money transferred. Therefore, banks and the Ministry of Public Security have now connected to warn people early when they enter their money transfer accounts.

Mr. Do Huy Phuong - Deputy Director of Digital Banking, Military Bank (MB) - said: "The bank has cooperated with the Department of Cyber ​​Security and High-Tech Crime Prevention (A05), under the Ministry of Public Security, to have a list of fraudulent accounts, clearly showing that the recipient account is an account under suspicion of fraud, authenticated by the Ministry of Public Security and continuously updated, thereby immediately stopping the transfer to avoid arising risks".

At the conference to review 1 year of implementation and remove bottlenecks for Project 06, the Prime Minister requested ministries, branches and localities to uphold their sense of responsibility, "not saying no, not saying difficult, not saying yes but not doing", urgently perfecting institutions to serve the development of population data; connecting and sharing data in particular and national digital transformation in general; at the same time, promoting simplification and restructuring of administrative procedures to improve the quantity and quality of public services provided to people.

Currently, 60 credit institutions have implemented customer authentication through chip-embedded ID cards at counters, and 49 credit institutions have implemented chip-embedded ID card authentication via applications on mobile devices.

The State Bank has issued instructions on the implementation of Decision 2345 to credit institutions, foreign bank branches, and payment intermediary service providers. Therefore, if you cannot authenticate yourself on the phone, you can go to the bank for support. In cases of force majeure, bank staff will come to your home to assist. People need to be extremely careful with calls requesting support from strangers because they may be scams.

According to VTV

Source: https://doanhnghiepvn.vn/chuyen-doi-so/xac-thuc-sinh-trac-hoc-giup-bao-dam-an-toan-giao-dich-ngan-chan-lua-dao/20240628110116350