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Month: September 2016

One of Vietnam’s largest corruption scandal at Vietnam Construction Bank

Vietnam’s largest currouption scandals in the banking space has recently come to light in Vietnam Construction bank scandal. Fraudulent loans is one way to remove or extract money from a bank; To take out loans with a practice, bankers who would be more than willing or ready or eager to give support or confidence if they knew that the money will be just repaid or payback in full with interest. A fraudulent or cheated loan nevertheless is one type in which the borrower is a business entity or organization controlled by a dishonest or fraud bank officer or an accomplice who means someone who helps another to commit a crime; the borrower who receives something then declares or proclaims bankruptcy or also vanishes and the money is dead or extinct. The borrower might even be a not existing or not real or present entity and the loan purely a clever or cunning devices or expedient to hide a theft of a large sum of cash or currency from the bank. This can also be seen as a part or element of a larger whole withinmortgage or fake fraud.

Two of main responsible officers in Vietnam Commercial bank were those detained who were one of the Bank’s former chairman’s and also its CEO was said by online police in newspapers.

Nine of them are accused of the using the power and rights while performing public duties and one among them was Pham Cong Danh who is one among the list of Property Tycoon.

Fraudulent loan applications are those which lays or captures or gains a number of forms that differs from individuals or single member of a class using incorrect information to keep out of sight a credit history also filled with financial difficulties or problems and unpaid or outstanding loans to large company or group of companies using accounting wrongful or criminal deceptionto overstate or exaggerate profits in order to make a risky or high-risk loan which appears to be a sound investments for the bank.

Forged or fraudulent documents are often used to prevent (something) from being known about other thefts; Banks generally incline to determine their money showing great attention to each details so every penny must be accounted or considered for. A document that is claiming or we can say formally request or demand that a sum of money has been borrowed or acquired as a loan or withdrawn by an individual depositor or mortgagorwho transferred or invested can be valuable to those or someone who still wishes to hide or conceal the minor or smaller details that the bank’s money has in fact been stolen and taken and is now considered as gone.

Wire transfer fraud networks are such that for example the internationalSWIFTinterbank fund transfer system that are tempting or appealing to or attracting someone, even if wrong or unwise as much as targets such as once the transfer is made its difficult or almost impossible to reverse it. To settle accounts with each other with rapid and overnight wire transfer of large amounts of money that are common place, such networks are used by banks; though the banks have put certain checks and balances in place there is always the risk that the insiders or directors might try to attempt to use fraudulent or sometimes forged documents which claims to request that a bank depositor’s money be wired to another bank which is often or certainly an offshore account in some or one of the distant foreign country. One big scam is the Vietnam Construction back scandal.

There is always a very high risk of fraud when dealing with certain types of unknown or uninsured institutions.

But when the deal is with the offshore, the risk is greatest. Also dealing with Internet banks has risk such as it allows all choice of countries along with the banking regulations but not by any means limited to the institutions and organizations. A person might send a wire transfer from one country to another country. This all surely takes some days for the transfer to get it cleared along with be also available to be withdrawn by the other person which might still be able to get withdraw from another banks. The corrupted officers might approve the withdrawals but it shows that it is in pending status also then the other person might cancel the wire transfer along with the bank institution would take a monetary loss.

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Vietnam Construction bank scandal & Bank Frauds

Bill discounting fraud is essentially and mainly a confidence trick which a fraudster or cheat or dishonest person uses for a company exactly at the disposal to gain confidence with its current bank easily just by appearing as one of the genuine and fake image of profitable customer. The company regularly as well as repeatedly uses the bank methods to get payments or other related things from one or more than one of its genuine customers to give the illusion of being one of the desired customers.The customers in question is part of the fraud will actively pay any and all bills that are raised by the bank without any questions made and its seen that these payments are always made by them.

After a long period or span of time when it seems the bank is happy with the company after that the company will requests that the bank should settle its balance with the company before all process such as billing the customer. But again, business should continue further as normal for the fraudulent company along with its fraudulent customers and also with the unwitting bank. When the outstanding balance calculated between the bank and the company is sufficiently large enough or big enough then the company will start taking the payment from the bank also the company and its customers would disappear along with leaving no-one to pay all the bills issued by the bank.Annual list is also being prepared for unlicensed kind-of banks which are for the type of Treasury Department web sites.

In Vietnam Construction bank scandal where abuse of power and rights is done when performing the simple public duties which are now punishable by them up to at least 15 years in jail. The detainees and Pham Cong Danh allegedly used those capitals from the bank to do trading in government bonds as well as the shares to earn their own.Investigators in Vietnam found their acts of fraud had caused many losses of millions of dollars to state capital.When the fraud arrests were made, the officials were sacked from their posts before all were taken into custody.Vietnam’s economy had grown at its fastest pace since five years that was already boosted by strong exports records of foreign investment and buoyant or light and floating domestic consumption.But economic progress or advance is most vulnerable thing due to high public debts or accounts, huge but ineffective or inefficient state-owned enterprises or organizations and rampant or uncontrolled official corruption.

Communist who is from Vietnam has been struggling or fighting for years to clean up its huge or vast state-run sector.Payment card frauds through Credit Card frauds is most widespread as a means of stealing from banks or merchants or even clients.Booster cheques which are fraudulent or bad cheque or considered fake which are used to make a payment to the account of credit card just to bust out or raise or lift the exact amount of whatever available credit on otherwise legal or legitimate credit cards. The amount of the cheque is also credited to the card account by the bank as soon as the payment is made even though the cheque which has not yet cleared. The bad cheque is discovered before the perpetrator or suspect or culprit goes on a spending spree that is sustained period of unrestrained activity or obtains cash advances until the newly raised available limit or bound on the card has reached. One such case is of Vietnam construction bank scandal.

The original cheque gets bounced, but no use by then as it is already too late. Stolen payment cards Often are the first indication that a fraud or victim’s wallet has been stolen is when a phone call from a credit card issuer comes asking if the person has ever gone on a spending spree which means is it sustained period of unrestrained activity; it’s one of the simplest form of theft which involves stealing by borrowing the card itself and charging or shopping or buying number of high ticket items to it in the starting or first few minutes or hours itself before it is realized or is reported as lost or stolen. When the person comes to know, it’s all over and no solution to it.

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