He said the central bank’s efforts include stepping up system security, switching from cards with magnetic strips to those with microchips, applying international standards to the IT system’s safety and security, and stepping up supervision of the card payment system.
At the same time, the SBV will also ask banks to raise card users’ awareness about security, and work with the Ministry of Public Security to strictly punish those who commit bank fraud.
According to Hung, payment fraud is rising rapidly and has become a matter of concern in the world, citing a report by the card issuer MasterCard stating that total global losses from payment fraud amounted to US$21 billion in 2015.
In Vietnam, losses are only one third of the world’s average but the number of fraudulent cases is on the rise, said Hung.
The governor attributed such a rise to holes in banks’ security systems, customers’ inattention to information security, and the collusion between bank staff and thieves in some cases.
In recent frauds, the SBV has directed concerned banks to provide advances to affected customers while investigations are under way, said Hung.
During the Q&A session, the central bank’s governor informed the National Assembly that credit institutions are rated annually in terms of such criteria as capital, assets, administration capacity, business performance, liquidity, and sensitivity to market risks.
The ratings will be used to identify weak credit institutions and take appropriate management measures.
