Financial Crime World

Vietnam’s Financial Sector Braces for Increased Threats of Cybercrime and Money Laundering

In the digital age, Vietnam’s financial sector is facing new challenges from cybercrime and money laundering. Here’s a closer look at the issue and its impacts.

Financial Crimes: A Global Concern

  • Commercial banks paid $2.7 billion in fines for money laundering-related activities worldwide in 2021 [vuanminhtuan, FPT IS].
  • Financial crimes caused losses worth $3.6 billion in 2021 [vuanminhtuan, FPT IS].

The Rise of Cyberattacks in Vietnam

Ransomware Attacks

  • Vietnam ranked second in Asia for the amount of ransomware attacks in 2021 [source].
  • A 200% increase compared to 2020 [source].

Cyberattacks in the Finance and Banking Sector

  • 90% of all cyberattacks in 2021 had connections to the finance and banking sector [Viettel Cyber Security].
  • Up 42% compared to 2020 [Viettel Cyber Security].

Identity Fraud and Forged Credentials

  • Vietnam is the leading country in forged identity cards for authentication [veriff’s Fraud Report 2020].
  • 12.9% of global cases [veriff’s Fraud Report 2020].

Impact on Institutions and Businesses

  • AIS identified and dealt with 9,519 cyberattacks and shut down 926 fraudulent websites [AIS representative].
  • The technical systems of the agency logged almost 4,000 reports of swindling from Vietnamese internet users [AIS representative].

Advanced Threats and Preparation

Despite the challenges, many institutions and businesses remain unprepared to minimize risks. Up-to-date information on new threats and proactive strategies to prevent attacks are crucial in safeguarding cybersecurity and maintaining trust within the financial sector.

Some instances of cyberattacks and financial crimes:

  • A loss of $190 million due to a security exploit at Crypto Nomad.
  • AIS dealing with multiple cyberattacks and shutting down fraudulent websites in Vietnam.

Conclusion

Cybersecurity challenges are mounting in the digital age, making it essential for financial institutions and businesses to stay informed and take proactive measures to protect themselves and their customers from cyber threats and financial crimes.

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