Financial Crime World

Vietnam’s Digital Frontier: Battling Cyber Fraud and Protecting Businesses

Amidst the rapidly digitalizing landscape of Vietnam, a growing concern looms large: cyber fraud. With online transactions on the rise, the Southeast Asian nation has become a prime target for criminals looking to exploit vulnerabilities and cause significant financial losses. In this article, we offer an overview of cyber fraud in Vietnam and practical tips for businesses to safeguard their interests.

Current Landscape of Cyber Fraud in Vietnam

  • Vietnam’s Ranking: Vietnam ranked second after India in a report by the Global Anti-Scam Alliance (GASA), losing approximately 3.6% of its GDP (~VND 91.8 trillion / USD 16.23 billion) to cyber fraud in 2023.
  • Online Fraud Cases: Online fraud cases jumped by 65% in the first six months of 2023 compared to the same period in 2022.
  • International Criminals: International criminals capitalize on the situation by transferring stolen funds to accounts in Vietnam, where regulations are less stringent and the handling of fraud is less experienced.

Vulnerable Businesses

Businesses, both domestic and foreign, are popular targets for cybercriminals due to their large transactions compared to individuals. Fraudsters employ a range of tactics, including:

  • Phishing Scams: Attempts to trick individuals into revealing sensitive information via email, text messages, or phone calls.
  • Business Email Compromise (BEC) Attacks: Fraudsters impersonate company executives or vendors to extract sensitive information or request payments.
  • Ransomware: Malware that encrypts data and demands a ransom for its release.
  • Supplier Fraud: Cybercriminals assume the identity of a company’s supplier and request payment for fake invoices.

Armed Against Fraud

The Vietnamese legal framework, including:

  • The 2015 Criminal Code, as amended in 2017: Provides the basis for combating cyber fraud in Vietnam.
  • Decree No. 144/2021/ND-CP: Sets forth rules on the handling of cybercrime cases.

Cyber fraud may fall under Articles 290 or 174 of the Criminal Code, with potential penalties including imprisonment, fines, confiscation of assets, or prohibition from holding certain positions.

Businesses can also employ best practices, such as:

  • Secure Email Protocols: Implement secure email protocols like S/MIME or PGP to protect email content from interception and modification.
  • Strong Passwords: Enforce strong password policies and consider implementing a password manager.
  • Employee Training: Provide regular cybersecurity training to employees to raise awareness and reduce the risk of successful attacks.

Collaborating Against Cybercrime

To effectively combat cyber fraud, Vietnam’s law enforcement agencies, including the Criminal Police Department (C02) and the Department of Cybersecurity and High-Tech Crime Prevention and Control (A05), have collaborated to enhance their capabilities and coordinate with international partners. Businesses can minimize their risk of being targeted by:

  • Staying Informed: Stay updated on the latest threats and cybersecurity trends.
  • Robust Security Measures: Adopt multi-layered security approaches to protect against evolving risks.

Evolving Threat Landscape

As cybercriminals evolve their tactics, businesses must evolve alongside them. Stay informed about new threats, keep software updated, and remain vigilant to protect against emerging risks. By working together with law enforcement agencies, international partners, and security experts, Vietnam’s digital frontier will remain safe and secure for businesses and individuals alike.