Preliminary investigators said the alleged ringleader recruited Vietnamese nationals and brought them to rented houses in Tonpheung Commune, Bokeo Province.
The group allegedly installed computers and telecommunications equipment before carrying out online fraud schemes while impersonating insurance company employees.
According to investigators, the suspects primarily used virtual call center numbers to contact victims using databases containing information on primary school students and their parents.
The callers instructed victims to update the VNeID application and link their social security and health insurance information to their bank accounts.
They then sent victims a fake QR code described as an application file, instructing them to scan it in order to complete the verification process.
Investigators allege that the QR code enabled the suspects to steal money from victims' bank accounts.
Police said the network allegedly defrauded more than 1,000 victims nationwide and stole more than VND5 billion (US$191,000) between early June 2026 and the time of the arrests.
On July 19 and 20, Lai Chau Provincial Police, together with the representative office of Vietnam's Ministry of Public Security in Laos, Laos' Anti-Human Trafficking Department and Bokeo Provincial Police, carried out coordinated raids and arrested all 40 Vietnamese suspects in Tonpheung Commune.
At the scene, authorities seized 56 mobile phones, 49 computers allegedly used in the operation and numerous other items and documents.
Among the 40 suspects, investigators identified one alleged manager and one person responsible for accounting and financial records.
The suspects come from 15 provinces and cities across Vietnam, including 13 individuals from Lai Chau Province.
Investigators also found that three suspects had previous criminal convictions for intentional assault, theft and illegal possession of narcotics.
In addition, one suspect was wanted by Hanoi Police on allegations of theft.
Rapid drug screening showed that 16 of the 40 suspects tested positive for narcotics, according to police.
After Lao authorities formally handed over all 40 suspects and the seized evidence, Lai Chau Provincial Police completed the required legal procedures to transfer the group to Lai Chau Province for further investigation and handling in accordance with Vietnamese law.
Doan Bong - Xuan Minh

