The Ministry of Public Security has warned against the use of MyAlaaddinz, an app for illegal capital mobilization and multi-level marketing.

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The Ministry of Public Security has warned against the use of MyAlaaddinz

This is a mobile app advertised and shared on social networks, especially Facebook. It is described as a magic tool with which people can get a refund of up to 80 percent on the bills for goods they buy.

Besides MyAladdinz, people have recently been invited to use the IBG shopping app. Buyers are told that they will get a refund of up to 80 percent of total value when buying goods on the app.

The money will be refunded daily in two stages at 0.1-0.2 percent on IBG based on the total points that buyers have. Customers can use the points to continue buying or they can sell on the trading platform.

Local newspapers in early September reported that police found Alibaba's Chairman Nguyen Thai Luyen tricking 6,700 customers out of VND2.5 trillion.

Just days ago, newspapers reported a similar case at Angel Lina Investment JSC. The police received a letter of denunciation from 200 victims who had VND285 billion appropriated.

The victims said the company showed them ‘bogus projects’ on 10 land plots to seek capital from them.

Agen Lina and Alibaba successfully cheated victims as they understood the victims’ desire to make a profit, especially when ‘land fevers'’ occur in the real estate market.

They fabricated projects which promise huge profits to customers. Alibaba showed a profit of up to 12-15 percent for six-month investments and 28-35 percent per annum, which are 4-5 times higher than bank deposit interest rates.

How can people recognize financial scammers?

Lam Minh Chanh, a finance expert, said investors should be cautious about investment channels that promise high profitability.

“There is no such thing as a free lunch,” he said, adding that only professional, experienced investors can turn a crisis into an opportunity to earn higher returns.

“Bond issuers pay an interest rate of 8-12 percent per annum at maximum. The Gioi Di Dong and VInamilk, well known profitable enterprises, pay 15-20 percent in dividends, but they never commit the yield to shareholders in advance,” he said.

Chanh advised investors to carefully research investment channels. Many apps don’t have legal status or business registration, or a company account. These are signs of scams.

In the case of Alibaba, for example, it is a young, little-known real estate firm, but implements projects capitalized at tens of trillions of dong. Investors should also be wary of individuals who introduce themselves as "investment billionaires". 

Trong Dat

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