Da Nang business fined $5,500 for fake POS transactions to withdraw cash

Authorities in Da Nang, Vietnam, have imposed a substantial fine of 137.5 million Vietnamese dong on a local business for engaging in fraudulent point-of-sale (POS) transactions. The business, identified as L.H. in the Ngu Hanh Son ward, was found to be using POS machines for non-existent purchases, effectively creating fake transactions to withdraw cash and manage credit card debts.

According to the Economic Security Department of the Da Nang City Police, the business exploited POS terminals, which are designed for legitimate payments of goods and services, to legitimize cash flow and offer services like credit card renewals and cash advances. These activities generated illegal service fees and violated financial regulations. The investigation confirmed that no actual goods or services were exchanged during these transactions.

This action falls under regulations concerning administrative penalties in the monetary and banking sectors. The police emphasized that exploiting POS machines for illicit cash withdrawals poses significant risks, including money laundering and other criminal activities. They issued a stern warning, advising the public and businesses against using POS terminals for cash advances or credit card renewals outside of legitimate transactions. Failure to comply could lead to further legal consequences, including potential criminal charges if the acts are deemed sufficiently serious.