SBV orders tighter payment security after detecting chip theft fraud
The SBV asked payment service providers to urgently review their payment operations and step up measures to protect customers against increasingly sophisticated forms of card fraud.
HÀ NỘI —The State Bank of Vietnam (SBV) has ordered the strengthening of payment security and card safety measures after new fraud schemes have emerged, including the theft of physical card chips to create counterfeit bank cards.
The SBV asked payment service providers to urgently review their payment operations and take steps to protect customers against increasingly sophisticated forms of card fraud.
Cases have been detected in which fraudsters removed or swapped chips embedded in physical bank cards after customers used them at restaurants or shops. The stolen chips were then attached to blank cards to create counterfeit cards used to carry out unauthorised transactions and misappropriate money.
According to the SBV, some bank cards no longer display the cardholder's name on the physical card, making it more difficult for merchants to verify the identity of customers during transactions. Some card issuers also have yet to fully disclose card fees, interest rates and interest calculation methods, particularly for credit cards.
The central bank also warned that some foreign payment service providers are offering payment services to non-residents and foreign residents in Việt Nam by linking internationally branded payment cards, such as Visa and Mastercard, to their digital wallets.
To address these risks, the SBV asked for a review of foreign payment services providers to be carried out to ensure compliance with established regulations on cashless payments.
Banks and payment intermediaries must strengthen customer awareness campaigns about chip removal and card tampering scams, while studying technical solutions to prevent chips from being detached from physical cards and tightening supervision of payment acceptance points.
Information printed on physical cards must also be reviewed to ensure compliance with existing regulations. Fees, interest rates and interest calculation methods must be disclosed fully so customers clearly understand their rights and obligations, especially when using credit cards. — BIZHUB/VNS
