Reviewing internal procedures, banks take strong action to prevent money fraud

High-tech crimes, especially in the financial and banking sector, are becoming increasingly sophisticated. The banking system is concentrating its efforts; at the same time, adding solutions to closely coordinate and take strong actions to protect customers and the reputation of the entire industry.

Risk Management Support Coordination Handbook

Dr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banks Association (VNBA). Photo: VNBA

Speaking at the meeting to implement the "Handbook on coordination to support risk handling for accounts/cards/payment acceptance units related to money transfer transactions, payments suspected of fraud, forgery, and scams" on October 21, Dr. Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banks Association (VNBA), said that the implementation of coordination to prevent and combat fraud and scams in the field of accounts and cards is a very important task.

Add a barrier to protect customers against card and account risks.

“This is also a very difficult field to implement, especially in the context of the credit institution system promoting digital transformation,” said Mr. Nguyen Quoc Hung.

Recently, the State Bank of Vietnam (SBV) has issued many regulations to ensure that commercial banks (CBs) comply with the correct procedures when implementing services, from money transfer, payment to card issuance and use. The banking system also issued internal regulations to minimize risks for customers as well as for banks.

"However, the situation of fraud and forgery through accounts and cards is still very complicated with a very sophisticated frequency and level. In many fraud cases, the money flow is often transferred through many accounts in a short time, making recovery almost impossible. Without quick and timely coordination, it will be impossible to block the money flow. However, the blocking must also be in accordance with regulations. This handbook is not a regulation for blocking accounts, but a guide for banks to coordinate in accordance with internal regulations, Circulars, Decrees of the Government , of the State Bank and internal regulations of each credit institution", said Dr. Nguyen Quoc Hung.

Strengthen coordination between banks to prevent fraud and cheating in account and card transactions.

According to the Secretary General of VNBA, with the direction of the State Bank, especially the support of the Banking Inspection and Supervision Agency; Payment Department; Information Technology Department; Legal Department and related units, VNBA has been assigned to be the focal point for developing and implementing the Handbook for coordination in handling fraud and scams in the field of accounts and cards for member organizations.

“This policy was proposed by the Association in 2023. At the meeting with the State Bank at that time, Deputy Governor of the State Bank Pham Tien Dung also directed and agreed that the development of the Handbook was extremely necessary. Immediately after that, the Association started implementing it and now, after nearly 2 years, the Handbook has been completed,” said Mr. Nguyen Quoc Hung.

Through many working sessions as well as consulting with the State Bank, a number of related Ministries and branches..., by September 30, the Handbook was issued under Decision No. 71/QD-HHNH of the Association's Chairman with the name "Handbook guiding coordination in supporting risk handling for accounts/cards and payment acceptance units related to transactions suspected of fraud, forgery, and scams".

Ms. Le Thi Hong Nhung, Deputy Head of Service Monitoring and Operation Center, NAPAS - Drafting unit presents the content of the Handbook.

At the meeting, Ms. Le Thi Hong Nhung, Deputy Head of Service Monitoring and Operation Center, National Payment Corporation of Vietnam (NAPAS), the main drafting unit of the Handbook, presented the content of the Handbook and some issues that credit institutions need to pay attention to.

According to Ms. Le Thi Hong Nhung, the processing process will start with the requesting organization (TCYC) receiving the verification request from the cardholder/account and creating a support request (YCHT). This request is then transferred to the NAPAS Risk Management System to record and automatically trace related transactions and accounts. After the requesting organization (TCNYC) applies risk handling measures and responds to the YCHT, TCYC will receive feedback and notify the customer.

To avoid cases of cardholder/account abuse, the Handbook requires TCYC to ensure that customers making complaints commit to the accuracy of the information and take legal responsibility for complaints that arise from disputes...

Discussing at the meeting, VietinBank representative shared that although the Handbook is not legally binding, in practice this is a very meaningful document that helps banks have a basis for more effective connection and coordination. A notable fact is that when customers submit a complaint, the transaction is often completed - the money is transferred to another bank and withdrawn very quickly. Therefore, VietinBank representative hopes that the transaction blocking system will soon be applied synchronously across all banking channels.

"We also hope that in the future, monitoring will not only stop at bank accounts, but also expand to e-wallet accounts. Because although the value of each wallet transaction is small, the quantity is very large; fraudulent transactions currently often transfer money through wallets and then withdraw or use it to buy and sell digital assets. If the coordination system between the Ministry of Public Security and banks can be expanded to cover e-wallet payment channels, the effectiveness of preventing financial crimes will increase significantly," a representative of VietinBank proposed.

There needs to be coordination according to the "golden time"

Mr. Hoang Ngoc Bach, Head of Department A05 (Ministry of Public Security).

“While the banking system and the Management Agency are making efforts to perfect coordination procedures, criminal groups have gone far in organizing, operating and exploiting loopholes in the financial system to launder money or appropriate assets. If we do not promptly tighten coordination mechanisms and do not proactively prevent, we will always be passive and fall behind criminals,” warned Mr. Hoang Ngoc Bach, Head of Department A05 (Ministry of Public Security).

To improve prevention effectiveness, a representative of the Ministry of Public Security said that there needs to be coordination at the "golden time" between banks and the police. Currently, the processing process after receiving a complaint from a customer is still slow. "In many cases, from the time the victim reports until the bank provides data to the investigation agency, it takes several months. At that time, the money flow has passed through many intermediary accounts, making it almost impossible to trace," said Mr. Hoang Ngoc Bach.

For example, in 2023, there were many cases of foreign criminals attacking the systems of international businesses, impersonating partner emails, and requesting money transfers to Vietnamese bank accounts. Some cases were fortunately discovered in time thanks to the coordination between the Vietnamese Ministry of Public Security and the police of European countries, helping to recover money for foreign partners, contributing to affirming Vietnam's reputation in the fight against financial fraud.

A representative of the Ministry of Public Security proposed: “In the new process, when there is a request for verification, the bank must provide transaction data and account information within 3 hours of receiving the official request, and connect directly with the police agency to promptly block it. If this golden time is taken advantage of, the possibility of recovering the money will be very high. If there is a delay, all subsequent efforts will be meaningless.”

Another worrying issue is the boom in the buying and selling of bank accounts. Currently, many accounts have been bought, sold, and rented to serve fraudulent activities. The subjects have even expanded to using cryptocurrencies to conceal cash flows. "Only when banks, management agencies, and the police force really work closely with a high sense of responsibility and determination, can the work of preventing financial fraud and scams be truly effective," a representative of the Ministry of Public Security affirmed.

Mr. Pham Anh Tuan, Director of Payment Department (State Bank of Vietnam):

“Complying with the law” is difficult, but “complying with consensus” among banks to protect customers is even more difficult. This requires a great deal of determination, not only from the operational department but also from the bank leaders, who must truly understand and share the losses of the people. The reputation of each bank as well as the whole system depends on how we act together in cases like this.

Source: https://baotintuc.vn/kinh-te/ra-lai-quy-trinh-noi-bo-ngan-hang-vao-cuoc-manh-me-ngan-chan-nan-lua-tien-20251021171857667.htm