91% of financial frauds in Vietnam linked to banking data breaches

By Minh Son December 10, 2023 | 04:12 pm PT

An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy

Banking data was exploited in 91% of financial fraud cases reported this year in Vietnam, highlighting a critical need for enhanced transaction security among lenders and third-party platforms.

The Ministry of Information and Communication identified that of the 15,900 reported financial fraud incidents, the vast majority implicated the banking system, Tran Quang Hung, deputy head of the ministry’s Authority of Information Security, said at a recent conference.

The main tactics used by criminals included counterfeiting and account hijacking, among 24 identified fraudulent methods.

AIS has successfully blocked over 4,000 websites and shielded 3.6 million internet users from such fraudulent activities.

However, the increasing willingness of banks to share customer data with entities like fintech firms and retailers is a double-edged sword, presenting new security risks that call for updates to Vietnam's legal framework to mitigate fraud, he said.

Enhancing the legal framework, according to Hung, would enable fintech firms to innovate further and cater to the growing consumer demand.

Nguyen Hoang Long, deputy CEO of Vietnam’s payment gateway Napas, stressed the importance of establishing a code of conduct for banks amid the shift to digital finance.

He emphasized the necessity of standards to protect customer rights during digital transactions, urging for a set of banking system standards to address these concerns.