Ten executives from Muaban24 Online Trade and Training company (MB24) were arrested by Vietnam police suspected of having defrauded more than 10,000 people, worth VND600 billion (or USD28 million) in the country.
MB24 has more than 50 branches in 32 provinces and cities, offering people online shops for VND5.2 million (or USD250) for the people to buy and sell goods at cheap prices. But while people paid real money to MB24, they got virtual money in return. Although they were told initially that the virtual money could be exchanged into real money, when someone wanted to quit, they were told to transfer the virtual funds to others instead.
MB24 also offering commission of VND1.5 million (or USD70) to existing members when they refer new members to sign up. They are targeting people from remote areas, not computer-savvy or even particularly interested in buying or selling goods online including farmers, students and teachers.
by Terry Brown