Vietnam Witnesses Surge in Cyber Fraud: A Grave Threat to Businesses

In the digitizing world, Vietnam is becoming a hotspot for cybercriminals seeking to exploit vulnerabilities and conduct financial crimes against businesses. In this article, we provide an overview of the rising issue of cyber fraud in Vietnam and offer practical advice for businesses to safeguard themselves against falling victim to such illicit activities.

Vietnam’s Digital Economy: Fertile Ground for Cybercriminals

Vietnam’s growing economy attracting foreign investment and the increasing adoption of online platforms create a fertile ground for cybercriminals to harvest valuable data and financial transactions. With its expanding economy and ongoing digital transformation initiatives, the country offers lucrative opportunities for cybercriminals seeking financial gains.

Cybercrime Statistics in Vietnam

According to recent reports, Vietnam ranks second among developing countries in terms of the percentage of GDP lost to scams. The total loss in 2023 was VND 91.8 trillion (USD 16.23 billion), equivalent to 3.6% of the nation’s GDP.

Online fraud cases have increased by:

1. 65% in the first half of 2023 compared to the same period last year, and
2. 38% compared to the last six months of 2022.

The number of victims and the value of damages resulting from cyber fraud in Vietnam have also risen dramatically.

Factors Contributing to the Growth of Cyber Fraud

The expansion of the digital economy and the lack of stringent regulations contribute to the growth of cyber fraud in Vietnam. Additionally, international cybercriminals use the country as a destination to launder money due to its less stringent regulations and a lack of experience in handling fraud.

Types of Cyber Fraud Impacting Businesses

Cybercriminals target businesses due to the larger financial transactions compared to individuals. Below are the most common types of cyber fraud impacting businesses in Vietnam:

1. Phishing: Cybercriminals use misleading emails or fake websites to trick employees into revealing sensitive information, such as login credentials, financial details, or customer data.
2. Business Email Compromise (BEC): Fraudsters pose as executives or vendors and send fraudulent emails requesting payments or sensitive information.
3. Vendor or Supplier Fraud: Fraudulent vendors or suppliers may provide substandard products or services, overcharge, or not deliver as promised.
4. Ransomware Attacks: Cybercriminals infect a company’s network with malware that encrypts data and demands a ransom for its release.

Addressing Cyber Fraud in Vietnam: Regulatory Framework and Procedures

The Vietnamese government has taken steps to combat cyber fraud through legislation such as the 2015 Criminal Code, as amended in 2017, and Decree No. 144/2021/ND-CP on administrative penalties for violations against regulations. However, due to the sophisticated nature of cyber fraud, handling cases can be lengthy and complex.

Protecting Your Business from Cyber Fraud

To minimize the risk of falling victim to cyber fraud, businesses in Vietnam should prioritize cybersecurity and implement the following measures:

1. Educate employees: Provide regular training to employees on cybersecurity best practices.
2. Implement multi-factor authentication: Use multi-factor authentication for all critical systems and applications.
3. Update software and systems regularly: Ensure all systems and software are up-to-date to protect against known vulnerabilities.
4. Establish relationships with trusted vendors: Vet potential vendors thoroughly to ensure their legitimacy and ability to deliver as promised.
5. Protect against ransomware attacks: Implement robust firewalls, antivirus software, and data backups.
6. Collaborate with law enforcement: Establish a relationship with local authorities and law enforcement agencies.

By staying informed about the latest cyber fraud trends and implementing strong security measures, businesses in Vietnam can significantly reduce their risk of falling victim to these illicit activities.