Preventing Fraud in Stock Transactions with Chip-embedded Citizen Identification Card Authentication Solution
Preventing identity fraud in securities trading is currently a top priority. The State Securities Commission (SSC) requires securities practitioners to complete investor identity verification by August 31, 2024.
Preventing identity fraud in securities trading is a critical task
Alongside the technology boom, cybercrime, fraud, and scams have become increasingly severe. Especially in the securities sector, exemplified by the security breach in VNDirect’s trading system. Hackers exploited Zero-Day vulnerabilities to infiltrate VNDirect’s system, encrypting data with malware and paralyzing trading activities for a week.
VNDirect's incident serves as a wake-up call for enterprises and securities organizations. Ensuring information security, preventing fraud, and cyberattacks are essential measures to avoid unpredictable damages in the securities industry.
Chip-based Citizen ID (CCCD) authentication to prevent identity fraud in securities trading
Following the banking sector's strong implementation of Project 06 under Decision No. 2345/QD-NHNN, effective from July 1, 2024, the SSC also issued Official Dispatch No. 4501/UBCK-CNTT to review and standardize investor and practitioner data in accordance with Government Project 06/CP. This is a vital task aimed at cleansing the securities market while enabling organizations to proactively ensure security and prevent cyberattacks.
Chip-based CCCD authentication is a practical and suitable solution that brings many benefits to securities companies at this time:
Identity verification and investor authentication: Read the chip on the CCCD and authenticate identity with the Ministry of Public Security’s RAR center.
Fraud prevention: Biometric identification such as fingerprints, iris scans, and random actions helps reduce the risk of identity fraud and trading scams.
Investor data security: Chip-based CCCD is equipped with advanced encryption technology, ensuring the safety of investors' personal information and preventing unauthorized access.
Preventing identity fraud in trading helps securities organizations minimize financial risks. This is a crucial task that must be urgently implemented to comply with Government regulations on information security and anti-money laundering. GMO-Z.com RUNSYSTEM offers securities companies a secure eID chip-based CCCD authentication solution. This trusted solution enables firms to promptly fulfill SSC’s requirements.
For detailed consultation on services and solutions, please contact Hotline: 097 583 0096 or Email: [email protected] | Website: https://ssolutions.vn
