Trần Quang Đạo, the man behind the fraud ring. — Photo laodong.vn

HÀ NỘI — The Ministry of Public Security has broken up a large-scale criminal network that defrauded hundreds of thousands of people across the country, primarily elderly victims, stealing hundreds of billions of đồng, authorities said on Friday.

The group was led by 33-year-old Trần Quang Đạo from Hóc Môn District, HCM City, and operated across multiple locations in the city under the guise of legitimate businesses.

According to the police, Đạo and his accomplices exploited leaked personal information on social media to impersonate staff from medical and nutritional institutions.

They used software to mask their phone numbers and posed as health consultants, offering gifts and promotional offers to persuade elderly individuals to buy nutritional supplements and pay fees to receive prizes.

The suspects built trust by gradually increasing the value of the promised rewards and associated fees, pledging to refund the money once the products were received. However, they did not deliver on these promises and kept the victims' payments.

The ministry said that since early 2023, the group had defrauded hundreds of thousands of victims, with losses amounting to hundreds of billions of đồng. Most of the victims were elderly, low-income earners dependent on pensions, savings, or family support, with limited access to market information or technology.

"In just over the past 100 days, the suspects defrauded more than 10,000 victims, stealing over VNĐ50 billion (US$1.9 million)," the ministry said in a statement.

To operate the scheme, Đạo had four companies registered under relatives’ names and organised them into structured departments such as administration, sales, and customer service. He also rented office space and purchased necessary equipment to support the operation.

On June 17, under the direction of Deputy Minister of Public Security Nguyễn Văn Long, police raided multiple sites, including the headquarters of the four companies and related warehouses.

Authorities detained 218 individuals and seized 65 laptops, 21 desktop computers, 301 landline phones, more than 220 mobile phones, and a large quantity of related documents and materials.

The ministry described the case as the largest of its kind ever uncovered in Việt Nam involving domestic suspects using computer networks, telecommunications, and electronic tools to commit fraud under a corporate cover. — VNS