Scams and fraud pose significant concerns for governments and communities worldwide. In Vietnam, this is a continuing concern for the digital economy stakeholders. For example, Vietnam’s Authority for Information Safety (“AIS”), under the Ministry of Information and Communication, received more than 220,000 reports of online cases of scams and fraud in the first 10 months of this year, with most related to finance and banking. It is expected that the true figures are higher, as many victims refrain from reporting scams due to embarrassment. This affects the economy as it is estimated that Vietnam loses 3.6% of its GDP annually to fraudulent activities.
What is more alarming is that the impacts of scams and frauds extend beyond the financial losses. Incidents such as phishing and other fraudulent activities erode trust in electronic transactions, thus also stifling adoption and capping the potential growth. In addition, the rise of emerging technologies, such as artificial intelligence, has further complicated the problem. Scams are increasingly difficult to distinguish from legitimate interactions, with reports of AI-related scams (e.g., deepfakes) surging by 1,530% between 2022 and 2023.
Thus, it is imperative to create a safe and trusted online environment for everyone to sustain the growth of the digital economy. The Tech for Good Institute brought together representatives from the public, private, civil society, and academic sectors to discuss how Vietnam can build resilience against the increasing threat and sophistication of scams and fraud.
Participants:
- Pham Thuy Hanh, Deputy Director General, Legal Department, Office of the Government
- Ngo Van Duc, ADB, former Deputy Head of the Payment Systems Supervision Division, Payment Department of the State Bank of Vietnam
- Nguyen Minh Duc, Legal Department, Vietnam Chamber of Commerce and Industry
- Nguyen Duc Lam, Policy Expert, Institute for Policy Studies
- Binh Nguyen, Cybersecurity Expert, FPT IS Company Limited
- Vu Anh, Deputy Head of the Foreign Relations Division, Vietnam Consumer Protection Association
- Filip Graovac, Chair of the Digital Economic and Innovation Committee, AmCham Hanoi
- Trang Dang, Head of Public Affairs, Grab
- Trang Do, Public Affairs Assistant, Grab
- Ming Tan, Founding Executive Director, Tech for Good Institute
- Keith Detros, Programmes Lead, Tech for Good Institute
- Regina Ng, Partnership Lead, Tech for Good Institute
Key Takeaways:
1. “Scams” and “frauds” are used interchangeably in common conversations about online safety.
While there are official and legal definitions in various policy instruments in Vietnam, the general public often find these concepts unclear. According to the digital economy stakeholders, the Vietnam Criminal Code differentiates scams and frauds from each other depending on their objectives. Scams involve deceiving individuals into voluntarily providing sensitive personal information, typically resulting in financial loss. Fraud, on the other hand, involves the unauthorised acquisition of personal information, which may not cause immediate financial harm but can lead to serious long-term consequences. There is however an understanding across all stakeholders that Vietnam needs to build resilience. Resilience, in this context, refers to the awareness and capacity of individuals and communities to identify and respond effectively to scams and fraud. Enhancing this resilience is essential to reducing the impact of these deceptive activities.
2. Clear legal frameworks are needed to enhance resilience.
Stakeholders highlighted that fraudulent and deceptive acts are closely linked to broader challenges in the digital economy. For example, cybersecurity and data protection are not standalone issues. Scammers and fraudsters often exploit leaked data or previously compromised information using social engineering techniques. This highlights the critical need to strengthen Vietnam’s data protection and cybersecurity laws to safeguard sensitive information and reduce vulnerabilities. Furthermore, there was also a discussion on how a data law would clarify data-sharing responsibilities across sectors and industries. In Vietnam’s context, establishing such guidelines would enhance coordination among stakeholders, improving resilience against cyber threats and fraudulent activities.
3. Balancing user convenience and online safety is a key consideration for creating a trusted digital economy.
The efficiencies of digital solutions come with inherent risks and challenges. For Vietnam, it is essential to remain innovative in fostering the right balance between user convenience and safety. Achieving this requires a combination of robust regulatory policies and increased public awareness. For example, the State Bank of Vietnam (“SBV”) has introduced several preventive measures to address the risks of fraud and scams. These measures include regulations that limit unverified transactions to less than VND 10 million per transaction and VND 20 million daily. Banks are also required to conduct regular system audits, flag suspicious accounts, and take appropriate remedial actions. Furthermore, SBV collaborates with television producers and educational institutions to raise public awareness about scams and promote financial literacy from an early age.
4. A whole-of-society approach is key to building Vietnam’s resilience against scams and frauds.
Governments, the private sector, civil society, and research organisations all have vital roles in addressing fraud and scams. For example, government agencies and private companies can establish designated points of contact to streamline coordination efforts. Training and research institutions can enhance awareness by educating the public about emerging forms of online fraud, contributing to a safer digital environment. Public-private initiatives, including anti-fraud software and targeted training programmes—such as those equipping people with disabilities to navigate cybersecurity risks—are instrumental in raising awareness and strengthening capacities. Additionally, cross-border partnerships enhance resilience by facilitating the exchange of best practices, developing local talent, and fostering cooperation among governments, businesses, and social organisations.
