Vietnam Banks Tighten ID Checks to Protect Customer Funds Amid Fraud Surge

Vietnam's central bank is bolstering defenses against escalating online fraud by enforcing stricter customer identification and deploying advanced security measures. The State Bank of Vietnam (SBV) has directed payment service providers to enhance customer verification, integrating biometric data from chip-equipped citizen ID cards and the VNeID mobile app. This move aims to ensure accurate authentication for individuals opening bank accounts, issuing cards, and establishing e-wallets.

The banking sector is witnessing a surge in cashless transactions, with a projected total value of 28 times GDP by 2025. Internet and mobile payments have seen significant growth in early 2026, while ATM usage declines. However, this digital shift has also fueled a rise in sophisticated scams, with criminals exploiting "ghost" corporate accounts, Deepfake technology, malware, and impersonation tactics to steal customer assets.

In response, the banking industry has rolled out comprehensive solutions. These include biometric verification, customer data cleanup, integration with the national population database, and a real-time system for detecting and preventing risky transactions. The SIMO system, deployed across 149 units by March 23, 2026, has identified over 688,000 suspicious payment accounts, e-wallets, and bank cards. The system has also proactively alerted customers to potentially fraudulent transactions, leading to over 1.2 million instances where users voluntarily paused or canceled their transactions. This has prevented losses exceeding 4.3 trillion Vietnamese dong (around $170 million USD) in the first four months of 2026, demonstrating its effectiveness in mitigating online fraud damage.

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The development of fast, instant payment services always goes hand in hand with the risk of increasing fraud and scams in cyberspace.