Vietnam mandates facial recognition for digital payments above USD 390

Thursday 4 July 2024 16:21 CET | News

Vietnamese authorities have mandated the use of facial recognition technology for digital payments exceeding USD 390.

This new requirement applies to money transfers conducted through both banks and e-wallets, necessitating facial scans via smartphone banking applications.

Vietnam mandates facial recognition for digital payments over USD 390

The State Bank of Vietnam has stated that this measure is intended to enhance the security of online and card-based transactions. Despite this, the regulation has sparked privacy and security concerns among internet users, who worry about the extensive collection of biometric data and potential exposure to cyber threats. These concerns are underscored by Vietnam’s cybersecurity challenges; in 2023, Vietnam's web domain, .vn, ranked as the fifth most vulnerable globally to cyber-attacks and data theft, according to a report by cybersecurity firm Kaspersky.

Global trend towards biometrics

Vietnam's move towards facial recognition for digital payments is part of a global trend where countries are increasingly incorporating biometric technologies into financial systems. Similar measures have been adopted in countries like China and India, where biometric data is used for identity verification and to secure digital transactions. However, these initiatives often face criticism for potential privacy infringements and the risks associated with data breaches.

As Vietnam advances in its digital transformation journey, the balance between enhancing security and protecting individual privacy remains a key point of contention. Financial institutions are now tasked with adapting to the new regulations, which may involve significant technological upgrades and increased compliance costs.

The debate surrounding the necessity and implications of such security measures continues to evolve, with stakeholders closely watching the impact on both the financial sector and individual freedoms.

Technological evolution

Advances in technology are expected to significantly impact the efficacy and security of facial recognition systems. Emerging technologies such as AI and machine learning (ML) are poised to enhance the accuracy and speed of facial recognition systems, reducing errors and improving user experience. AI algorithms are becoming more sophisticated in distinguishing between real and fraudulent attempts to use facial recognition, thereby increasing the system's resilience against spoofing attacks.

However, as technology advances, so do the methods employed by cybercriminals to exploit vulnerabilities. The need for constant vigilance and adaptation of security measures remains critical. Governments and financial institutions must stay ahead of potential threats by continuously updating and improving their facial recognition systems to address new challenges.

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Keywords: facial recognition, digital payments, money transfer, banks, e-wallet
Categories: Fraud & Financial Crime
Countries: Vietnam
This article is part of category

Fraud & Financial Crime