Hanoi cops probe 187 in holiday membership scam that stole nearly $7M from seniors

The Hanoi police are investigating 23 companies for allegedly selling non-existent holiday memberships to defraud more than 500 victims, mostly seniors, out of VND181 billion (US$6.87 million).

They said they sold the memberships by assuring the victims they could be resold at a substantial profit.

They explained that some of the 23 companies teamed up, bouncing victims back and forth between their businesses to keep them trapped in a cycle of fraud.

Police officers question the suspects in a holiday membership fraud. Photo by VTV

They are questioning 187 suspects. The case is still under investigation and police have yet to announce which specific charges the suspects are facing.

The Ministry of Public Security recently issued a warning about individuals and organizations exploiting the "holiday membership contract" business model to defraud consumers.

Fraudsters typically contact potential victims by phone, offering free travel vouchers or invitations to seminars at luxury hotels and resorts.

At these events, they are made attractive offers such as "five-star holidays," "luxury resort experiences," "special promotions," and "limited-time deals available only today."

They are encouraged to buy holiday packages advertised as "inexpensive, valid for many years and easily transferable, or capable of generating profits."

They then use high-pressure tactics to push the customers into signing contracts and making large upfront payments on the spot.

The police have warned the public to be cautious about companies offering unusually large commissions or brokerages, often 20-40%, to lure people into such schemes.