The rate of forged transactions by cards in Vietnam was sometimes three times more than the world average and ten times over the regional average, reported the Vietnam Banking Association on September 30.

The ratio reduced early this year, but it was still higher than the world average and three times that over the regional average.

According to Vietnam Banking Card Association’s Nguyen Thu Ha, forged transactions by card were recorded at POS (points of sale) and e-commerce websites (with card-not-present cards) and this type of crime is increasing quickly.

Ha said that the number of cases and the value of transaction are both rising and this is the latent risk for banks.

Experts have warned that credit card crime is moving from Europe to Asia after European countries applied hi-tech in-card payment. In Southeast Asia, Vietnam is the target of credit card criminals after they attacked strongly in Thailand and Malaysia.

Ha admitted that there are many favorable conditions for card crime in Vietnam. The banking card market has developed for 20 years in Vietnam. At present, there are 49 card issuers in the country, which have delivered nearly 27 million cards of over 200 brands. Card payment network has been expanded with 11,000 ATMs and 32,000 POS, while credit card techniques are not very modern and the legal corridor for this field is not completed. Cooperation among banks to manage risk is also weak.

Bui Quang Tien from the Payment Department of the State Bank of Vietnam worried that POS can collude with criminals to forge transactions.

Tien said that banks must tighten control over risks in the credit card business and set up their own standards on card payments, plus apply international standards on data security.

PV