Law Enforcement Disables Illicit AI-Powered Betting Syndicate in Vietnam

Thai Binh Accusations:Authorities in the province of Thai Binh have slapped charges on 21 suspects for their alleged involvement in a cunning international criminal syndicate that illicitly dabbles in gambling and laundering money.

This operation, though not the first to surface, makes waves as it's the first in Vietnam to utilize AI technology for facilitating financial crimes.

Over a Million User Accounts Unearthed

The accused are believed to have ties with the gambling platform KUBET, a foreign-based website offering games such as online lottery, football betting, and the popular Vietnamese dice game "tai xiu".

Vietnamese users would access this platform via smartphones, set up accounts connected directly to their bank details, and place bets with real money.

As the investigation unfurled, it was found that the network amassed over 1 million user accounts, with transactions amounting to over 1 trillion VND ($39.2 million).

However, the gambling ventures just scratched the surface.

deeper probing exposed a complex money laundering scheme that employed shell bank accounts and advanced digital tactics.

A Taiwanese national, suspected to be the leader of the ring, worked in collaboration with at least one Vietnamese accomplice. They employed individuals to open multiple bank accounts at local banks. These accounts were then used to transfer and camouflage large sums generated from illicit gambling activities.

To further confound their trail, the gang utilized internet banking apps installed on remote computers. Whenever a transaction exceeded 10 million VND ($392), triggering mandatory biometric verification, they employed AI-generated deepfake videos of account holders to fool bank security systems, enabling them to complete high-value transactions without requiring the account owners' physical presence.

Over 500 Bank Accounts Frozen

Investigators have since frozen more than 500 bank accounts connected to this operation. They estimate that the laundering process shifted approximately 200 billion VND ($7.84 million) every month, with the total laundered sums believed to have surpassed 1 trillion VND between September 2024 and April 2025.

The investigation is ongoing, with police hinting at potential further involvement of additional suspects.

"This is a substantial transnational organized crime syndicate operating ingeniously, especially their innovative usage of AI technology for committing these crimes," authorities stated.

Digital crime has been continually evolving, posing increased pressure on Vietnam's law enforcement to keep abreast of new technologies being exploited by criminal networks.

Just earlier this year, Dong Nai authorities took action against an illegal sports betting operation that raked in VND 1.2 trillion ($47.8 million). Last month, Vietnam announced the possible construction of a $2.2B casino resort amid growing gambling activity in Southeast Asia.

Enrichment Insights:

Traditional Investigative Methods: The police have primarily relied on traditional investigative methods to dismantle the network. They have also frozen over 1,000 bank accounts allegedly involved in the money laundering scheme, and are investigating individuals for illegal gambling and money laundering [2][3].
International Cooperation: International cooperation is crucial in addressing transnational organized crime [5].
Future Directions: Vietnam is focusing on digital transformation and is enhancing online security measures, including improving biometric security systems to thwart future AI-driven fraud [6].

The operation in Thai Binh is significant as it marks the first time AI technology has been used in Vietnam for facilitating financial crimes, such as sports betting on platforms like KUBET.
The criminal syndicate under investigation in Thai Binh isn't just involved in gambling; they also employ complex money laundering schemes using shell bank accounts and advanced digital tactics, including AI-generated deepfake videos to bypass biometric security systems.
The Thai Binh case is just one example of the increasing digital crime in Vietnam, as shown by the illegal sports betting operation in Dong Nai and the proposed construction of a casino resort, while law enforcement struggles to keep up with the evolving technologies being exploited by criminal networks.