Vietnam reports 4,000 cases of identity theft for illegal business registration

The Ministry of Finance has reported that approximately 4,000 individuals have been victims of identity theft used to establish fraudulent businesses. These incidents involve unauthorized use of personal identification to register companies without the knowledge of the actual owners.

Victims have faced significant consequences, including being named as legal representatives for non-operational companies, being held liable for tax debts, and facing travel restrictions. In one instance, a resident in Ho Chi Minh City was prevented from traveling to Australia due to tax debts linked to four companies registered in her name without consent.

Authorities suggest that bad actors exploit lost identification documents, purchased personal data, or stolen information to create these entities. The primary motives for such fraud include illegal invoice trading, tax evasion, and misappropriating tax funds. The ease of digital business registration has inadvertently created vulnerabilities that allow for these unauthorized registrations.