Mr Pips US$61 Million Fraud Case Turns Focus to Vietnam’s Payment Gateways

Prosecutors in Vietnam have called for deeper investigation into how funds in the US$61 million Mr Pips fraud case moved through several payment intermediaries, including 9Pay, BigPay, ApotaPay, CPay, and HTP. This recommendation, outlined at the Hanoi trial, suggests a focus on the channels used by alleged ringleaders Phó Đức Nam and Lê Khắc Ngọ to collect nearly VND 1.6 trillion from investors via pre-programmed fake stock and forex trading platforms. Mr Pips testified to using gateways like Ngân Lượng and 9Pay, though authorities have not charged any of the five payment firms.

Beyond individual culpability, the Hanoi People’s Procuracy has recommended that the State Bank of Vietnam enhance its oversight. This includes stepping up checks on banks and licensed payment intermediaries for compliance with anti-money laundering (AML) rules. Furthermore, the central bank is urged to tighten electronic customer verification (eKYC) for online account opening. eKYC is a digital identity verification process crucial for preventing fraudulent account creation.

Prosecutors believe these stricter measures, particularly against accounts receiving money from many sources or transacting at high frequency, would help detect and block suspicious activities more promptly. Payment intermediary 9Pay stated it proactively froze merchant accounts upon detecting unusual transactions and is cooperating with investigators, highlighting its commitment to system security and regulatory compliance. This suggests a move towards strengthening the foundational regulatory framework governing digital financial transactions.