The SBV is seeking to replace traditional password-based systems and one-time passwords (OTPs) with more secure biometric methods
Starting July 1, 2024, the State Bank of Vietnam (SBV) has made biometric authentication mandatory for certain online transactions. This move aims to improve security as cashless payments become more common. Any single online transaction over VND10 million (about USD $392.65) or daily transactions exceeding VND20 million will now require biometric verification.
The SBV is seeking to replace traditional password-based systems and one-time passwords (OTPs) with more secure biometric methods. These older systems have shown vulnerabilities to cyberattacks. By matching biometric data with the national ID database, the new measure aims to enhance bank account security and prevent financial fraud.
Pham Anh Tuan, Director General of the SBV’s Payment Department, noted the widespread use of personal payment accounts in Vietnam, mentioning that over 87 percent of adults have at least one account. There has also been a recent surge in the use of QR codes for payments.
Experts believe the new biometric requirements will help manage accounts and transactions more effectively, as well as aid in tracing and recovering money lost to cyber scams. Vu Ngoc Son from the National Cybersecurity Association stated, “Biometric authentication could limit the use of virtual bank accounts and aid law enforcement in combating cybercrime.”
Domestic banks are already preparing for these new regulations by notifying and reminding customers to update their biometric registration. In 2023, financial losses due to online scams in Vietnam were estimated at around VND8-10 trillion, with 91 percent of these scams related 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 use multi-factor authentication to protect their financial information.