Central bank aims to bolster payment security

The State Bank of Vietnam (SBV) on August 29 directed agencies to enhance security measures against risks and payment fraud, following the execution of several scams recently.

Under a circular, the central bank asked payment service providers to scrutinize and reassess all their process related payments to ensure the central bank’s regulations on safety and security of banking services are adhered to.

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The providers have been ordered to report any problem to the central bank.

For card and online payments, the providers are required to research and implement solutions to enhance security of their online payment systems. Monitoring, supervision, evaluation and upgrading of information technology system related payments must be checked regularly.

Besides finding solutions for early detection of phishing sites to recommend to their customers, the providers must also increase training on safety and security awareness for their staff and customers.

The providers should give timely warnings, instructions and complete information to customers so that the latter can understand the risks and tricks associated with fraud and they can make payments securely.

When a fraud does take place, the providers must report it to SBV and collaborate with customers, law-enforcement agencies and other relevant units to deal with the situation quickly and accurately in accordance with the law and ensuring customers’ best interests. Relevant information must be reported to customers in a timely manner.

Under the circular, SBV also requires the Vietnam Banks Association to research and regularly make public new frauds and tricks related to payment, especially regarding cards and e-payment, so that payment service providers and customers can proactively take measures to ensure safety and minimize the risk of fraud.

The association must also organize workshops with the participation of foreign and domestic experts to introduce new frauds and tricks and identify solutions to improve safety and security in payment.

Bank supervisory agencies and SBV’s branches in provinces and cities need to add the inspection of information technology-related payments to their periodic inspection program to strengthen inspection and supervision.

SBV is also due to organize an online conference on payment and information technology early next month to enhance State management in the field.

The move was made following the perpetration of several frauds recently. Notably, earlier this month, VND 500 million (USD 22,500) was stolen from the bank account of a Vietcombank customer in Hanoi.

The theft came as a shock to bank account owners in Vietnam, where annual average income was some USD 2,100 last year, according to the World Bank.