Will cryptocurrency scams and fraud be filtered out sooner?

Cryptocurrency scams and fraudulent projects will be screened and risks will be warned about globally through cooperation among countries.

"Filtering" out fraudulent projects.

Vietnam has allowed a pilot program for the cryptocurrency market, including digital currencies, but has also been warned of numerous risks, especially fraud in the digital currency sector. Therefore, with the recent signing ceremony of the UN Convention on Cybercrime Prevention ( Hanoi Convention) with representatives from 72 signatory countries, these risks will be mitigated.

Preventing cybercrime, tracing and combating cryptocurrency fraud will be more effective after more countries join the Hanoi Convention.

PHOTO: DAO NGOC THACH

Cybersecurity expert Vo Do Thang analyzed the recent spate of cryptocurrency scams, both globally and in Vietnam. The first reason is the decentralized nature of cryptocurrencies and the anonymity of transactions. This makes it impossible for any organization or country to monitor them, leading to the emergence of many fraudulent projects. Secondly, many countries previously lacked relevant regulations, leaving no basis for prosecuting fraud and crimes in the cryptocurrency field. Any individual or organization could issue their own cryptocurrency, launch a "virtual" project, or engage in fraudulent activities targeting investors.

Therefore, when many countries agree to join the Hanoi Convention, they will review, amend, and enact relevant laws on cybercrime, including that related to cryptocurrencies. From there, individuals and organizations wishing to issue cryptocurrencies will have to comply with common regulations. In other words, any activities or projects brought to the public will have to be identified and no longer anonymous. From this legal framework, there will be a monitoring mechanism from ministries and agencies not only of one country but also of many countries.

The Hanoi Convention can be likened to an Interpol (International Criminal Police Organization) agency in cyberspace, thereby helping Vietnam in particular and many other countries to more effectively prevent international fraud and combat cybercrime in general.

Cybersecurity expert Vo Do Thang

Furthermore, global cooperation under the Hanoi Convention will help many countries, when cyberattacks or fraud investigations occur in the cryptocurrency market, to have a point of contact, exchange data, and trace offenders more quickly. At the same time, data sharing in cybersecurity and anti-crime activities is crucial for countries to provide early warnings in the market.

"The Hanoi Convention can be likened to an Interpol (International Criminal Police Organization) agency in cyberspace, thereby helping Vietnam in particular and many other countries to more effectively prevent international fraud and combat cybercrime in general," Mr. Vo Do Thang shared.

Sharing the same view, cybersecurity expert Ngo Minh Hieu also believes that previously, cryptocurrency fraud or money laundering cases were often detected when criminals withdrew money through a legitimate exchange. Conversely, fraud cases are difficult to trace if criminals use "mixing machines," transacting through many different cryptocurrencies. But in the future, with cooperation between many countries and data sharing, tracing will be faster and more effective. At the same time, the handling of individuals and organizations involved in criminal activities or fraud will also yield better results.

Mr. Ngo Minh Hieu emphasized: Previously, individuals and organizations involved in fraud often resided in a particular country, and even if Vietnam detected them, it could not prosecute them due to the lack of cross-border coordination. The Hanoi Convention will provide a clear legal framework, and this coordination will help detect and prosecute crimes more quickly, potentially preventing and reducing the number of victims of fraud and attacks.

Minimize market risks.

According to Mr. Vo Do Thang, the most important thing is that the participation of many countries has shown solidarity and consensus in preventing and combating cybercrime in general, or fraud in the cryptocurrency market in particular. Because with the trend of technological development, cybercrime will continue to thrive. In particular, the market for crypto assets and cryptocurrencies is a field with many potential risks for both investors and organizations participating in the market.

Establishing a common legal framework in the fight against cross-border crime.

Most cyberattacks targeting Vietnamese infrastructure originate from groups located abroad. Therefore, the unification of criminalization in the Hanoi Convention will be a significant step forward, creating a common legal basis for combating transnational crime. Simultaneously, the identification and prevention of cyber risks, international cooperation, and capacity building and technical support will be enhanced. For Vietnam, cybersecurity experts and officials will need to improve their capabilities to collaborate with developed countries such as the US and Europe. Cybersecurity service providers and solution companies will also need to upgrade the quality of their products and solutions to meet global technological standards.

Mr. Vu Ngoc Son , Head of the Research, Consulting, Technology Development and International Cooperation Department of the National Cybersecurity Association.

Mr. Ngo Minh Hieu further analyzed: Cryptocurrency fraud is often a combination of cybercrime and transnational finance. In other words, cryptocurrency fraud represents an intersection between these two types of crime. Transnational financial criminal organizations may use cryptocurrencies for money laundering and terrorist financing, while cybercrime involves attacking e-wallets and defrauding people of money online. The Hanoi Convention, which focuses on preventing and combating cybercrime, also mentions cryptocurrencies in its implementation provisions.

To effectively combat cryptocurrency fraud in particular and cybercrime in general, Vietnam has been implementing numerous solutions. For example, a Cybersecurity Law is about to be passed, and policies regarding the cryptocurrency market have already been issued. Simultaneously, many programs and campaigns involving the entire population are being launched to combat fraud and raise public awareness. This is crucial because when people are vigilant and less likely to be scammed, authorities can focus more on other issues such as money laundering and large-scale cyberattacks.

"With the establishment of the Hanoi Convention, coordination between countries has become clearer and more consistent. In particular, the issue of sharing cybercrime data and cross-border digital evidence will help many countries in general, and Vietnam in particular, to more easily prevent, deter, and dismantle cybercrime groups in general, or cryptocurrency fraud in particular. Vietnam also needs to quickly train human resources in information security skills; and at the same time, encourage businesses to develop new technology products suitable to Vietnam's practical needs to meet the demands of information security and cybercrime prevention," said Mr. Ngo Minh Hieu.

Source: https://thanhnien.vn/lua-dao-gian-lan-tien-so-se-duoc-loc-som-185251029230428119.htm