Today, the application of digital transformation in personal data management creates a huge storage space. This requires banks and institutions to carefully review and implement adequate safeguards, preventing criminals from committing illegal acts, causing bad consequences, affecting individuals and organizations.

Current state of security in banking

According to the most recent World Retail Banking Report, 57% of consumers indicated they prefer online banking to traditional branch banking. Additionally, 55% of respondents now prefer using mobile banking apps to stay on top of their finances, up from 47% in the pre-pandemic era. The majority of financial institutions in the banking sector have actively engaged with outside service providers in recent years to create a digital ecosystem, according to the Financial and Monetary Market Review. Some third parties providing utility services connected to well-known banks, such as ride-hailing applications, e-commerce platforms, and entities that pay for electricity and water, etc., are still at risk of being attacked and the bank will be attacked back.

Moreover, based on the latest report of the Ministries of Public Security and Information and Communications in Vietnam, the banking sector is an industry that suffers a high volume of cybercriminal attacks, including several scams such as fake banking websites. In response to the issues, the State Bank of Vietnam has instructed units in the sector to concentrate on investing in information security and concurrently deploying various protection solutions, against network threats. As a consequence, information systems in the banking sector are always assured to be secure, run continuously, and satisfy the requirements of individuals and organizations.

Ngoài ra, theo báo cáo thống kê mới nhất của Bộ Công an và Bộ Thông tin và Truyền thông, ngành Ngân hàng thuộc nhóm phải chịu số lượng lớn các cuộc tấn công từ tội phạm mạng, với nhiều thủ đoạn như giả mạo website ngân hàng, đánh cắp tài khoản nhằm chiếm đoạt tiền… Trước những thách thức đó, Ngân hàng Nhà nước Việt Nam đã chỉ đạo các đơn vị trong toàn Ngành chú trọng đầu tư cho an toàn thông tin và triển khai đồng bộ nhiều giải pháp phòng, chống tấn công mạng. Nhờ đó, các hệ thống thông tin trong ngành Ngân hàng luôn được đảm bảo an toàn, hoạt động liên tục, đáp ứng nhu cầu của người dân và doanh nghiệp.

Preventing bank security risks

From there, it can be concluded that functional units should focus on reviewing the status quo and developing a personal data protection strategy in order to deal with the associated risks and move simultaneously toward tougher regulatory frameworks. According to the research by Thales Group, the world’s top provider of technology solutions, there are now 6 highly regarded technology solution trends, including:

  • Cloud platform to secure digital banking: combines KYC, Authentication, and Risk Management services to secure onboarding and access to digital banking services and enhance the customer journey.
  • Mobile authentication: allows all other transaction channels to be secured with the mobile.
  • Authentication Server: the heart of the world’s most versatile, scalable, and secure authentication solution dedicated to protecting digital banking with multi-factor authentication.
  • OTP authentication and signature devices: authentication devices meet the multi-factor authentication security requirements for “something you know” and “something you have” very effectively.
  • PSD2 and open banking: The PSD2 regulation drastically impacts the financial ecosystem and infrastructure for banks and businesses using payment data for the benefits of consumers, understanding and addressing PSD2 requirements related to strong customer authentication, risk assessment, and open banking API.
  • Dynamic code verification: replaces static cryptograms with dynamic codes, thus mitigating fraud linked to the use of static card numbers stolen online, without any impact on the merchant’s infrastructure.

In conclusion, protecting personal data is not only the duty of the information technology department or particular clients but also in the commercial sector as more and more data is gathered through digital means. The relevant units must reach a compromise on the goals and control requirements, particularly the security standards that will be implemented to satisfy the requirements of legal compliance.

Grasping the significance of information security issues in the banking sector, the International Data Group in Vietnam (IDG Vietnam) in collaboration with the Vietnam Banks Association (VNBA), the Vietnam Digital Communications Association (VDCA), the Ho Chi Minh City Computer Association (HCA) and the Department of Information and Communications of Ho Chi Minh City will organize the Vietnam Retail Banking Forum 2022 with the attendance of speakers and top authorities in banking and information technology. The topic is “Potential market, multiple suppliers, diversity of innovative services, start-up, opportunities and challenges for digital transformation and IT application in Retail banking activities, Fintech”. This year will keep providing helpful information and discuss unresolved issues in 2021.

On December 16th 2022, IDG cordially invites you to attend the Vietnam Retail Banking Forum 2022, to understand more about security issues relating to the processing of personal data in digital banking at the period.

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