Mobile money, despite being expected to boost cashless payments, has aroused concerns over potential risks when it is introduced, Thanh Nien newspaper reported.
As a report from the BIDV Research and Training Institute explained, mobile money is similar to e-wallets. However, while e-wallets are linked to bank accounts, mobile money is not.
According to the research team, besides upsides such as reducing transaction costs, management costs and cash payment risks, mobile money carries certain risks related to customer data, illegal charge collection, impersonation of service providers, laundering, gambling or loss of money potentially caused by improper management plans.
The use of mobile scratch cards for gambling, as in the case of Rikvip as previously reported, has contributed to concerns of improper management, which could cause mobile money to be used for money laundering, gambling and other illegal actions.
Regarding concerns over security risks, Truong Quang Viet, deputy general director of Viettel Digital, noted that the mobile money plan has emphasized minimising risks.
“The case of Rikvip involves discounted mobile scratch cards, but there will be no discounts on mobile money,” Viet explained.
According to Viet, security at Viettel has been improved. The operator has hired a network security firm that specialises in ensuring the information security of telecom services and eventually mobile money.
Nguyen Anh Quan, product manager of mobile money (Viettel Digital), confirmed that Viettel is awaiting the introduction of a national citizen database and bank sandboxes.
In a country with strongly developed mobile money initiatives like Japan, data from network operators are linked to the citizen database of the government, and information on postpaid subscribers is better managed, according to Quan.
Quan added that Viettel prioritises the quality of user applications, so customer identity is of utmost importance.
Nguyen Son Hai, deputy general director of VNPT Media, earlier told Thanh Nien Newspaper that network operators have advantages when it comes to utilising mobile money thanks to their technological backgrounds.
Only authenticated users are allowed to use mobile money. Their accounts are closely linked to their phone numbers, thus the operator will need to confirm every single customer, remarked Hai.
Hai added that phone accounts then become payment accounts. The operator then has options in case of phone loss or SIM card cancellation while still securing users’ accounts.
According to Viet, the relationship between banks, e-wallets and mobile money is symbiotic. When e-wallets were first introduced, it was believed they would be a tough rival to banks, but it turned out to be symbiosis.
Banks are unable to act as fast as fintech firms, but the latter is not as strong or as widespread as the former. This is also true for mobile money as users may have many bank accounts but still need to use cash at certain points, which is where mobile money is useful.
Mobile money targets users who do not have bank accounts (over 40 percent of the population), particularly those in remote areas, by making use of the telecom infrastructure.
According to network operators, mobile money is not a new service to make money but will be used to promote cashless payments. They plan to impose no fees for the mobile money service during the first phase.
https://english.thesaigontimes.vn/76904/mobile-money-causes-security-concerns-.html
