Brian Jeffrey
In 2024, financial fraud captured attention as victims faced immense losses, amounting to millions of dollars. Even experienced financial professionals were not immune to these elaborate scams, underscoring the pressing need for enhanced security protocols.
However, with the introduction of fresh regulations, biometric identification, and heightened public vigilance, experts are hopeful for a significant decrease in fraud cases by 2025.
The previous year featured several notable scams, including one where a banking professional lost upwards of 400 million VND (approximately $16,000) to scammers. Though the incident was reported to law enforcement, the perpetrators remain at large.
“Anyone, even those with a PhD in finance, can be tricked if they ignore essential security practices,” remarked Dr. Le Xuan Nghia, a financial analyst.
A particularly alarming case involved businesswoman Tran Thi Chuc, who was defrauded of 40 billion VND ($1.6 million) by individuals impersonating police officers. They persuaded her to transfer funds to accounts at Vietcombank and Techcombank for validation. By the time she realized the deceit, her funds had been completely drained.
Chuc subsequently sued the banks, claiming they should bear responsibility for the incident. Nonetheless, both district and provincial courts ruled against her, stating that the bank’s staff had complied with relevant protocols.
A high-ranking retail banking official termed the ruling a pivotal moment, emphasizing the responsibility of customers in their financial dealings.
In 2024, to address escalating fraud incidents, Vietnam’s banking sector initiated key security updates:
Biometric Validation: Commencing July 1, 2024, banks are mandated to authenticate customers via fingerprint or facial recognition prior to executing high-risk transactions.
Regulatory Revisions: Updated banking regulations (Decree 52/2024, Circulars 17 & 18) implement stricter guidelines for digital transactions and improve fraud detection mechanisms.
As reported by Le Van Tuyen, Deputy Director of the State Bank of Vietnam’s Payment Department, over 84.7 million banking clients (72% of active users) had undergone biometric verification by early 2025.
“Top banks like Vietcombank, VietinBank, and BIDV have recorded more than 80% biometric enrollment, which has notably diminished fraud exposure,” Tuyen stated.
Since biometric methods were introduced in July 2024, instances of fraud have plummeted by more than 50%, indicating a promising outlook for 2025.
In response to the new policies, banks are:
Extending operating hours to facilitate customer biometric data updates.
Raising awareness through SMS notifications, social media initiatives, and mobile banking alerts.
Boosting fraud detection capabilities via AI-powered security solutions.
Some banks, like BaoVietBank, have kept their branches operational through meal times and weekends to support customers ahead of the Lunar New Year cut-off.
With strengthened security and increasing awareness, 2025 is poised to witness a reduction in banking fraud, signaling a pivotal change in combating financial crime.
