Police in southern Vietnam have arrested a man accused of using a fake banking application to trick shop owners into believing they had received digital payments, highlighting a growing type of fraud targeting businesses that rely on QR code transactions.
According to authorities in Dong Thap Province, the suspect allegedly used a mobile app capable of generating counterfeit bank transfer confirmations, allowing him to walk away with goods without making any actual payment.
Investigators identified the suspect as 29-year-old Pham Dang Sang, who is being held on allegations of fraud and property appropriation.
The investigation began after a shop owner reported losing more than VND11 million (approximately US$420) on June 24 when a customer presented what appeared to be a successful bank transfer after scanning the store’s QR payment code.
Police said officers identified and arrested the suspect within two hours of receiving the complaint.
During questioning, Sang allegedly admitted downloading an application from an online link that could generate fake payment notifications. To make the scam appear more convincing, he reportedly registered a genuine bank card number within the app so the payment details looked authentic if sellers carried out a quick visual check.
Authorities said the suspect visited stores and businesses that accepted QR code payments, selected merchandise, scanned the merchant’s payment code, and then displayed a fabricated “successful transfer” notification to staff. Believing the payment had been completed, shop owners handed over the goods even though no money had been transferred to their accounts.
Police believe the same method was used in multiple incidents, with total losses approaching VND12 million.
The case serves as another reminder for retailers in Vietnam’s rapidly expanding cashless economy to verify that funds have actually arrived in their bank account before releasing goods. Fraudsters increasingly exploit the speed and convenience of digital payments by presenting convincing screenshots or fake banking notifications instead of completing genuine transactions.
Authorities also said the suspect tested positive for illegal drugs during a preliminary screening. According to police, he has previous convictions related to drug possession and theft and was released from prison in May 2025.
Vietnam has experienced a rapid rise in QR code payments in recent years, making digital transactions increasingly convenient for both locals and foreign visitors. However, cybersecurity experts and law enforcement agencies continue to warn businesses that payment confirmation screens or screenshots should never be treated as proof of payment unless the funds have been verified in the recipient’s banking system.
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