On June 20, the Criminal Police Department, in coordination with the Ministry of Public Security and the Ho Chi Minh City Police, arrested an organized crime ring led by Tran Quang Dao (born 1992, residing in Ho Chi Minh City). This group operated under the guise of legitimate enterprises to defraud hundreds of thousands of victims nationwide.

Authorities searched multiple locations, including the headquarters of four companies founded by Dao under the names of family members in Ho Chi Minh City: Ressun Trading and Service Co., Ltd.; Resshose Tiktok Shop; Rees Mark Co., Ltd.; and Lesson Trading and Service Co., Ltd.

Investigators identified 218 involved individuals, 149 of whom were women. Nearly 40 members held roles such as department heads, managers, and team leaders, all operating under Dao’s direction to target and defraud elderly victims.

The majority of those defrauded lacked access to accurate information, had little technological literacy, and were often low-income or financially dependent individuals.

According to investigators, the group used gift-giving schemes involving health supplements, household goods, and wellness products to lure victims. In total, authorities seized 65 laptops, 21 desktop computers, 301 landline phones, over 220 mobile phones, and numerous documents, records, and tools connected to the fraud.

The largest number of participants in a fraud scheme to date

At the investigation agency, the suspects admitted to exploiting leaked and purchased personal data online. They impersonated staff from healthcare centers or nutrition hospitals and used encrypted internet-based calling software to reach out to elderly individuals with offers of free gifts. These gifts included nutritional supplements and household items, with victims asked to pay small fees to receive promotional prizes or participate in reward programs for future purchases.

To build trust, the perpetrators gradually increased the value of the prizes and associated fees, promising refunds after the delivery of promotional items. However, these promises were never fulfilled, and the group instead pocketed the victims’ payments.

Preliminary estimates suggest that since early 2023, the group defrauded hundreds of thousands of people of several hundred billion dong. Most victims were elderly with limited income, relying on pensions, savings, or family support, and had limited knowledge of the market, products, or technology.

Notably, within just over 100 days, the criminals managed to deceive more than 10,000 people, stealing over 50 billion VND (more than $2 million USD).

According to the investigation, Dao asked relatives to establish four companies, leased office spaces, and equipped them with tools and resources to run the operation. These companies were organized into departments such as administration, human resources, accounting, sales, and customer care, all clearly structured and managed.

This case marks the largest-ever fraud operation uncovered by Vietnamese authorities, involving a domestically based, Vietnamese-led organization that used electronic communications and IT systems to orchestrate a widespread scam under the guise of legitimate businesses.

Dinh Hieu