Banks in Vietnam are simultaneously notifying and urging customers to register biometric information (fingerprint, facial recognition) for online money transfers of 10 million VND or more, starting from 01 Jul 2024.
Since the beginning of this week, clients in Vietnam have been continuously receiving notifications from banks, requiring biometric registration to prepare for the new transaction rules. These notifications are repeated through SMS and online platforms.
Banks have announced that from July 1, online transfers over 10 million VND per transaction or over 20 million VND per day must be authenticated using biometrics (fingerprint, facial recognition) that match the data on the chip-embedded citizen ID Card.
Additionally, some banks require biometric authentication for changing online transaction applications or for recurring bill payments over 100 million VND.
Mr. Lan Tran, Deputy General Director of VietinBank, stated that to date, several hundred thousand VietinBank cilents have proactively updated biometric authentication on the bank’s application.
Starting from early June, the bank will send notifications to customers, prioritizing those who frequently transfer more than 10 million VND or whose accounts were previously authenticated using the old non-chip citizen ID.
The requirement for biometric authentication for money transfers is stipulated in Decision 2345 of the State Bank of Vietnam, concerning safety and security solutions in online payments and banking cards, effective from early July.
For transfers of 10 million VND or less, and total daily transfers not exceeding 20 million VND, biometric authentication will not be required.
If a client transfers less than 10 million VND per transaction, but the total daily transactions reach 20 million VND, the next transaction on that day will require facial or fingerprint authentication.
Customers making their first transaction through mobile banking or using a different phone or computer than the last transaction will also need to undergo biometric identification.
According to the banks’ notifications, biometric registration can be done directly through the online application. The device must have facial or fingerprint scanning capabilities and NFC (Near-Field Communications) functionality. If a customer’s device lacks these features, they can visit the nearest bank branch or transaction office for assistance.
This new regulation has been introduced in the context of increasing online fraud and scams. Despite warnings from banks and regulatory authorities through various channels, the number of victims continues to rise.
“Fraudsters often hide their true identities and erase traces of their fraudulent funds by buying or renting ‘trash’ accounts for transferring money,” said the Deputy General Director of VietinBank, adding that biometric authentication will limit non-authentic account transfers and prevent the circulation of fraudulent funds.
Moreover, adding a layer of biometric authentication in addition to SMS OTP and Soft OTP, according to Mr. Lan, will further protect the account holder’s funds.
A bank representative also assessed that biometric identification and authentication is the most optimal measure currently to minimize forgery and provide high security.