Bank blocks deposits to accounts flagged as fraudulent

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) said it is developing a feature to block deposits into accounts marked as fraudulent in its internal database system. The bank also plans to deploy this feature on the interbank system, to protect customers from the tricks of high-tech criminals.

Blocking deposits to accounts marked as fraudulent is considered particularly useful in the context of rapidly developing information technology and increasingly sophisticated forms of fraud.

VPBank has implemented this feature for a long time, but only applies to accounts marked as fraudulent in the bank's internal database system.

Accordingly, based on the bank's assessment of reported transactions, the bank will block deposit transactions into accounts considered fraudulent on VPBank's blacklist.

Implementation on the interbank system requires coordination in data sharing among banks, as well as coordination from the Department of Cyber ​​Security and High-Tech Crime Prevention (A05), Ministry of Public Security.

At the conference to review the implementation of the Project on developing applications of population data, identification and electronic authentication to serve national digital transformation in the period of 2022-2025, with a vision to 2030 of the Government (Project 06) and the coordination plan between the Ministry of Public Security and the State Bank on implementing the tasks in Project 06, the feature of detecting and warning of fraudulent accounts was urgently agreed by all banks to be put into the system.

Previously, MB became the first bank to announce the deployment of a feature to identify fraudulent account information from the end of June 2024.

When making a money transfer, customers will receive a warning in case the recipient is a potentially fraudulent account. This allows customers to easily stop suspicious transactions, helping to protect the safety of their accounts and assets.

According to the State Bank, by mid-September 2024, about 38 million bank accounts had biometric data collected.

After two months of mandatory biometric installation for money transfer transactions of over VND10 million/transaction and total amount of over VND20 million/day, the number of fraud cases after July 1st was only 700 cases, down 50%; the number of accounts involved in fraud was only 682 accounts, down 72% compared to the average number of the first 7 months of the year.

According to the State Bank's regulations, from January 1, 2025, individual customers who have not had their biometric information collected can only transfer money directly at the bank's transaction counter.