Upcoming Fraud Coordination Handbook: Banks Often Left Clueless in Incidents, Resorting to ‘Funds Are Gone, Irretrievable’ Responses

On September 26-27, 2025, in Hue City, the Vietnam Banks Association’s Card Chapter hosted the 15th Anniversary Celebration (2010-2025) and the 2025 Annual Risk Management Subcommittee Conference, themed “Bank Card Safety – Risk Management in the Digital Age.”

During the conference, one of the key topics discussed by delegates was the issuance of the Handbook for Coordinating Fraud Risk Management in Payment Transactions (the Handbook). This guide aims to address fraudulent activities related to account, card, and unit transactions.

Addressing the conference, Nguyen Quoc Hung, Vice Chairman and Secretary-General of the Vietnam Banks Association, highlighted the increasing sophistication of fraudulent activities, which directly threaten customers’ assets. This prompted the association to develop a comprehensive handbook for member organizations to coordinate fraud management efforts.

“Initially, our goal was simply to establish a clear coordination mechanism, rather than relying on informal requests as in the past,” Mr. Hung explained.

In practice, many banks struggle to respond effectively when incidents occur, often leaving customers with the unsatisfactory answer: “The funds are gone, and cannot be recovered.” This erodes customer trust and limits banks’ ability to protect their clients’ interests.

“During our year-end meeting in 2023, we engaged with member units, representatives from the State Bank, and relevant agencies to discuss accountability in account and fund management. We agreed on the need for a transparent, coordinated process,” Mr. Hung added.

Legally, reporting procedures are complex: victims must notify the district police where the transaction occurred and provide bank confirmation of the transaction details. In some cases, completing these steps takes months, by which time the funds have often been spent. This highlights a lack of coordination in handling such incidents.

The association formed a working group to survey and develop a coordinated process, from identifying suspicious transactions and internal notifications to formal reporting to authorities.

After three months of rigorous work, with active participation from the drafting committee, the handbook was finalized. Feedback from the council, member organizations, and legal experts was incorporated, and input was sought from the State Bank of Vietnam (Payment Department, Legal Department), Ministry of Public Security, Supreme People’s Procuracy, Supreme People’s Court, and Ministry of Justice to ensure legal compliance. “The handbook has been approved and is awaiting official issuance,” Mr. Hung stated.

He emphasized that the handbook aims to provide financial institutions, regulatory bodies (such as the State Bank), and other agencies with a standardized process for effectively managing suspicious transactions.

Following the handbook’s release, the association will conduct training sessions and awareness campaigns for bank staff and hold specialized seminars to address implementation challenges.

“No single organization can combat high-tech risks alone. Only through coordinated efforts from central to local levels can we build a secure, efficient payment system. We hope the handbook’s launch will foster widespread adoption among member organizations,” Mr. Hung concluded.