Attending the meeting, on the VNBA side, were also Ms. Nguyen Hong Thanh, Head of the Policy Subcommittee under Vietnam Bank Card Association; Mr. Nguyen Ngoc Quy, Head of Risk Management Subcommittee under Vietnam Bank Card Association and representatives of VNBA’s professional units; On the Visa Association side, there were Ms. Dang Tuyet Dung, Visa Country Manager for Vietnam &Laos; Mr. Louis Smith, Senior Director of Risk Management, Visa Southeast Asia; Ms. Nguyen Thi Ba Linh, Director of Risk Management, Visa Vietnam and Laos; Mr. Kelvin Utomo, Director of Products and Solutions, Visa Vietnam and Laos; Mr. Ajay Gandotra, Director of Business Development - Card Payment, Visa Vietnam and Laos; Mr. Nguyen Huu Giap, Head of Government Relations, Visa Vietnam and Laos.
The two sides had a discussion on the card market and trends in risk and payment fraud based on the database of the quarter 3 in 2023.
Dr. Nguyen Quoc Hung, Vice President and General Secretary of VNBA
At first, Dr. Nguyen Quoc Hung, Vice President and General Secretary of VNBA, warmly welcomed and highly appreciated the Visa International service Association in promptly updating the market, trends of risks and frauds of card payments.
According to Dr. Nguyen Quoc Hung, in ecent years, technology has developed strongly and Vietnam is one of the countries with strong digital transformation, rate of people using cards increasing rapidly alongside with the risk of fraud in card payments. Therefore, Dr. Nguyen Quoc Hung posed questions to the the Visa International Card Organization to find solutions to support Vietnam credit institutions to ensure safe payment.
Mr. Louis Smith, Senior Director of risk management, Visa Southeast Asia
Talking at the meeting, Mr. Louis Smith emphasized that the rapid development of technology has caused a deep fear of being left behind. Digital transformation is one of the biggest growth drivers of our time, and the threat of obsolescence has never been more serious. In a context of competition that drives rapid growth, the changing nature of business models and the rapid pace of innovation have exposed the inherent fear and insecurity of business activities nowaday. The rules of participation have changed in every aspect of commerce and businesses are racing to maintain their relevance and competitive edge to ensure growth and development in the digital economy. The pressure of reputation and expectation has consumed all of the business's resources. The fragmentation of payment systems and the increasing attention to reputation, combined with pressure from social media, have changed the relationship between organizations and the stakeholders they serve. More than ever, every word, action and engagement is now scrutinized at a micro level. And stakeholders are becoming more vocal and agitated, demanding greater responsibility from organizations. Over the past decade, card payments have grown at a remarkable pace but with increased payment risks and fraud. Therefore, the urgent need today is to further strengthen risk management.
Sharing updated research on the Vietnamese market, Visa representatives mentioned 3 main contents: (1) Overview data on the fraud situation in the Vietnamese market and common forms of fraud in the Southeast Asia market in this times; (2) Online payment transaction authentication method based on risk assessment; (3) Update new solutions for the Vietnamese market.
Visa recognizes that common card issuing fraud that has occurred in the Southeast Asia region recently includes: non-technical attacks (the act of manipulating people instead of focusing on exploiting security vulnerabilities of systems and devices); card information leakage and data theft.
According to data recorded by Visa, in the third quarter of 2023, the rate of fraud in card issuing in Vietnam was higher than the average rate in the Asia-Pacific region and on the rapid rise. Most frauds in card issuing in Vietnam come from platforms related to online advertising.
Regarding on card aquiring, Visa recognizes common frauds such as money laundering transactions through which the card acceptance units handle unauthorized transactions provided by third parties and unknown by the bank card acquirers...
View of the meeting
In addition, Mr. Kelvin Utomo, Director of Products and Solutions, Visa Vietnam and Laos, also introduced Visa's new solution – Flex, that integrates multiple sources of fund in one card. Accordingly, customers can choose flexibly the source of funds from a credit limit or payment account, prepaid identification card or from reward points… from the e-banking application. Also, customers can manage their money effectively, more suitable for spending purposes, utilities of each card type and personal financial situation.
At last, Dr. Hung thanked Visa for sharing practical and high-quality knowledge that helps VNBA know more about card payment trends and he expressed the hope that Visa would continue to support credit institutions to ensure the interests harmony of all parties, to apply effective risk management solutions and improve consumer experience further. He also expected that Visa will more frequently update the Vietnam Bank Card Association on related information so as it can promptly provide warnings risks to credit institutions and users.
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