Da Nang business fined $5,400 for illegal POS transactions

A business operating in Da Nang has been penalized 137.5 million Vietnamese dong for engaging in fraudulent transactions using Point of Sale (POS) devices. The Economic Security Department of the Da Nang Police issued the administrative fine and ordered the business to forfeit all illicit profits gained from these activities.

Investigations revealed that the business utilized POS machines to process credit card transactions that did not correspond to actual purchases or services. This practice was employed to legitimize cash flow, enable cash withdrawals, manage credit card renewals, and collect illegal service fees, thereby violating currency and banking laws.

Authorities emphasized that POS machines are strictly intended for legitimate transactions involving the sale of goods and services. Engaging in the described activities not only constitutes an administrative violation but could also lead to criminal charges if the elements of a crime are met.

The police issued a public advisory, urging citizens to refrain from using their own POS machines for cash withdrawals or credit card renewals. They also cautioned individuals against allowing others to use their credit cards on POS devices for such purposes when no genuine transaction occurs. Such actions are illegal and carry significant risks, including potential involvement in money laundering and other illicit financial schemes.