Vietnam police warn of phone bank loan scams

The Ministry of Public Security has warned members of the public about a spate of phone scams involving con artists offering low-interest loans from well-known banks.

In a statement issued on Friday, the ministry said the most obvious trick was to convince would-be borrowers to pay a loan approval fee ranging from VND500,000 to VND5 million ($21-213).

To convince victims, the perpetrators have built websites and apps copying the banks' designs. They include Agribank, BIDV, Techcombank, Vietinbank, and TPBank.

The scammers have also created thousands of Facebook accounts to post adverts for loans with very low interest rates of just 1% per month, together with simple procedures that do not require face-to-face meetings, mortgages, or appraisals. If the borrower has an ID card and a bank account or ATM card, he or she can access a loan, the scammers advertise.

Victims are asked to provide information including their full name, phone number, ID card picture, and portrait photo.

The scammers then tell victims there are problems with their paperwork, and ask them to pay a "refundable" fee so they can process the loan application again. After the fee is paid, victims never hear from the scammers again.

Police said people have lost money while their ID information has been sold to fraud rings.

They also warned residents not to provide ID information, portrait photos, bank account information, or OTP codes over the phone or online, and refrain from transferring money to strangers.

The Ministry of Public Security also said any suspicious activity should be reported to the police.