Vietnam: Police Arrest 8 Members of Real Estate Scam Ring Over Massive Fraud Scheme

Vietnamese police in Ho Chi Minh City have arrested eight members of a real estate fraud ring at Bao Phuc Company for defrauding customers of large sums through a fake land development scheme. The group posted artificially cheap property listings on social media and classified sites, transported victims to rural areas under the guise of site inspections, and used fake project blueprints and fake buyers to extract deposits. Initial investigations have identified at least 28 victims and losses in the tens of billions of Vietnamese dong.

Overview of the Scam

Nguyen Hoai Phong, age 33, and seven associates operated Bao Phuc Company and related entities that posted artificially cheap real estate listings on social media and classified listing sites (Chotot.vn, Batdongsan.com) and TikTok. They targeted buyers from Ho Chi Minh City and other provinces including Dong Nai, Vinh Long, Can Tho, Nghe An, and Hanoi.

How the Scam Operated

Initial Contact: When potential buyers inquired about advertised properties, company employees claimed those properties were already sold.
Transport to Remote Location: Victims were persuaded to view alternative properties and transported by minibus or charter coach to rural areas in Tay Ninh Province (formerly Long An) for site inspections.
Psychological Manipulation: At the site, fraudsters presented detailed project plans featuring multiple fictional amenities. Simultaneously, undercover operatives posing as genuine buyers were stationed throughout the area, appearing to pay deposits and negotiate contracts. This manufactured buying frenzy was designed to pressure victims into committing deposits.
Theft of Funds: Once victims were convinced, the scammers circulated false information preventing transaction completion, allowing them to retain deposits in full or in part.

Evidence and Scope

Investigators conducted emergency raids on the company's main office, two branch locations, and Phong's residence, seizing company seals, computers, and hundreds of documents including deposit contracts and land transfer agreements dated 2024-2026. Initial investigations confirmed fraud against three victims totaling 1.77 billion Vietnamese dong; however, seized documents show hundreds of deposit contracts with customers, indicating total losses in the tens of billions of dong. Twenty-eight victims have been identified to date, with ongoing investigations expanding the case.

Warning Signs

Suspiciously Low Prices: Properties priced significantly below market value warrant caution.
Pressure Tactics: Requests to decide quickly or claims of limited-time offers.
Vague Legal Status: Unclear ownership documentation or inability to verify local government approval.
Artificial Buying Activity: Multiple apparent buyers rushing to sign contracts in quick succession.
Rushed Site Visits: Limited inspection time before transport to remote viewing locations.
Lack of Transparency: Unwillingness to provide complete legal documentation or enable independent verification.

Prevention Measures

Verify with Local Authorities: Always confirm land ownership, zoning approvals, and legal status through official government channels.
Cross-Reference Information: Consult multiple reputable real estate brokers and market reports before making decisions.
Professional Review: Have a lawyer or trusted expert examine all contracts before signing.
Avoid Crowd Psychology: Resist the impulse to decide based on others' apparent purchases; take adequate time for due diligence.
Use Licensed Agents: Conduct transactions only through officially registered real estate brokers.
Inspect Multiple Times: Make several independent site visits at different times of day.

Reporting Channels

Victims should contact Ho Chi Minh City Police's Economic Crime Investigation Division (PC03) immediately:

Economic Crime Investigation Division (Phòng Cảnh sát kinh tế)

Address: 14 Đoàn Như Hài, Xóm Chiếu Ward, Ho Chi Minh City

Police are also encouraging former employees of the criminal network to come forward; cooperation may result in lenient treatment.