Attending the meeting on the VNBA side were Dr. Nguyen Quoc Hung - Vice President and General Secretary of VNBA; Representatives of the Policy Subcommittee; Risk Management Subcommittee (Bank Card Association).
Dr. Nguyen Quoc Hung - Vice President and General Secretary of Vietnam Banking Association
On behalf of Visa International, there were Mr. Rahim Abdul, Senior Director of Risk Management, Visa Southeast Asia; some from Visa Vietnam and Laos as Ms. Dang Tuyet Dung, Director; Mr. Kelvin Utomo, Director of Products and Solutions; Mr. Nguyen Huu Giap, Head of Government Relations; Ms. Nguyen Thi Ba Linh, Director of Risk Management.
Ms. Nguyen Thi Ba Linh, Director of Risk Management (Visa Vietnam and Laos) updated specific data on the fraud situation in the Vietnamese market and the rate of payment risks, forms of domestic and international fraud, fluctuations in fraud rates, the rates of payment fraud risks among quarters in Vietnam... In addition, Ms. Linh also pointed out types of payment crimes such as: Fraud criminals via email, telephone... enticing individuals to collect account information, or fraud via text messages...
Accordingly, for card usage activities (issuing), in the first quarter of 2024, the total value of fraud in Vietnam decreased by 16% compared to the previous quarter, but increased by 139% compared to the same period in 2023. Accordingly, more than 99% of fraudulent acts make payments via CNP channel (card-not-present-payment transactions in which the cardholder and card are not present in the transaction, for example payments via the internet, phone, email...). Fraudsters approach and commit fraud mainly through advertising services (91.9%), digital product providers (1.7%), travel companies (0, 5%)…
As for cross-border transactions, in the first quarter of 2024, the total value of fraud was 8.11 million USD, down 17% compared to the fourth quarter of 2023. Fraud rates also decreased from 66.1% in the last quarter of 2023 to 57.5% in the first quarter of this year…
For card acceptance activities (acquiring), both value and fraud rate in the first quarter of 2024 decreased compared to the previous quarter. Of which, 59% of fraud is committed via CP channel (card-present - payment transaction in which the cardholder and card appear in the transaction), 41% via CNP channel...
According to Visa's assessment, Vietnam is better than other Southeast Asian countries in cross-border transactions, and has improved quarter over quarter but the payment fraud rate in Vietnam is still at a high level.
From the analysis, Visa representatives focused on the main risks in payment activities in Vietnam in particular and in Southeast Asia in general for both card usage and card acceptance activities.
Mr. Rahim Abdul, Senior Director of Risk Management, Visa Southeast Asia, said that in order to prevent payment fraud risks, management agencies in some Southeast Asian countries either have clear regulations or make recommendations for issuing banks to switch from SMS/OTP authentication to biometric authentication, for example in Singapore or in Vietnam.
Visa representatives also made predictions about the risk of fraud when crooks target cardholders, with many cases running ransomware and using artificial intelligence (AI) to commit fraud and steal data. Fraud methods are more and more sophisticated and targeting the supply chain to make money.
Ms. Dang Tuyet Dung, Director of Visa Vietnam and Laos
At the meeting, Ms. Dang Tuyet Dung, Director of Visa Vietnam and Laos, shared more solutions that Visa and Vietnamese banking partners are coordinating to deploy and help expanding the Vietnamese market and improving the payment infrastructure. Visa also wishes to accompany and receive additional support from the State Bank of Vietnam and VNBA for strong coordination and communication.
After listening to Visa's sharing, Dr. Nguyen Quoc Hung, Vice President and General Secretary of VNBA highly appreciated the detailed research and data that Visa has shown about the payment picture in Vietnam. He affirmed that fraud in current payment activities is an urgent and alarming problem, the reputation of the banking industry is also greatly affected, it is necessary to have measures to prevent violations in Viet Nam. Otherwise, credit institutions urgently need practical and effective solutions to manage and assess risks so as not only to protect customers and ensure systemic safety but also to improve customer experience while balancing costs.
Dr. Nguyen Quoc Hung requested Visa to continue cooperating with VNBA and the Bank Card Association to warn of risks and payment fraud to banks, customers and the whole society.
VNBA News
