Over 40,000 Vietnamese lured into $15.7mn AI livestream investment scam

Vietnam's Criminal Police Department under the Ministry of Public Security announced on Thursday that it had dismantled the operation behind Tatao Live, a platform allegedly run by foreign nationals through companies registered in Hanoi.

Investigators determined that the group had misappropriated more than VND220 billion ($8.5 million), while authorities have frozen over VND8.6 billion ($333,000) in assets.

Seven suspects have been charged in connection with the case, which involves the use of computer networks and electronic devices to misappropriate property and launder money.

Promises of easy money through AI

According to investigators, the suspects established Tatao Vietnam Technology Co., Ltd. in June 2025, with Hoang Trung Kien, born in 2001, serving as its director.

They also set up AI Livestream Market Development Co., Ltd., using the two businesses to promote Tatao Live as an AI-powered retail platform.

The app was advertised as a system capable of generating virtual livestream hosts to sell products automatically, supposedly in partnership with major e-commerce platforms such as TikTok, Shopee, and Lazada.

Users were told they could earn money simply by purchasing an AI livestream package, opening the app, and watching a video for 30 seconds to one minute.

Within two to four hours, money would supposedly appear in their digital wallets as livestream revenue, AI commissions, or Tatao Xu.

The basic package initially cost VND3.9 million ($151), later discounted to VND2.9 million ($112) with a promise of lifetime access.

More expensive Matrix AI livestream packages were priced at VND14.9 million ($577), VND84.9 million ($3,285), and VND418.9 million ($16,210).

The platform advertised daily earnings of VND30,000-50,000 ($1.16-1.93) for basic users and VND900,000-1.5 million ($35-58) for those purchasing Matrix packages.

To build credibility, the operators displayed business registration documents and office addresses, held online meetings, and organized promotional events featuring prize draws for motorbikes, smartphones, iPads, and cash.

They also circulated screenshots of successful withdrawals on social media, encouraging more people to join.

New investors paid earlier participants

Police said the platform initially made payments to users, some of whom received money within one to seven days.

These early payouts convinced participants that the system was generating real income, prompting many to invest larger amounts or recruit friends and relatives.

However, investigators found no evidence of genuine e-commerce transactions behind the advertised profits.

The app had no product listings, shopping carts, customer records, order histories, or payment documents that could substantiate the claimed livestream sales.

Instead, money collected from new participants was used to pay earlier investors through a programmed distribution system, police said.

The operators also introduced a seven-tier recruitment structure, offering commissions of approximately five to 17 percent based on the number of people recruited into the network.

The more members users brought in, the greater their potential earnings.

By mid-April 2026, the scheme began unraveling.

Users suddenly found themselves unable to withdraw their money, with withdrawal requests indefinitely marked as "processing."

Meanwhile, Zalo groups used to promote the platform were disbanded, company offices closed, employees left, and both the app and website stopped operating.

Investigators said the suspects had withdrawn cash, transferred funds through intermediary bank accounts, destroyed documents, and showed signs of moving assets overseas before the shutdown.

Police identified more than 40,000 participating accounts nationwide, with deposits totaling VND407 billion ($15.7 million).

Seven suspects charged, data security risks uncovered

The Nghe An Province police have charged seven suspects, including Tatao Vietnam director Hoang Trung Kien and three women identified as Do Thi Lien, Pham Thi Huyen, and Vu Thi Huyen.

The three women allegedly served as assistants, market managers, interpreters, and administrative intermediaries for the foreign nationals operating the scheme.

Two other suspects, Tu Thanh Thao and Pham Thi Duyet, worked as accountants, while the seventh allegedly participated in money laundering.

Investigators also raised concerns about the Tatao Live app's data security.

Technical analysis found that the software could access sensitive user information, including location, device details, and usage behavior, with indications that data was transmitted to overseas servers without adequate disclosure.

The platform's website was linked to Alibaba Cloud infrastructure in Hong Kong, while the app was also distributed through channels outside Google Play and had no official version on Apple's App Store.

Authorities warned the public against online investment schemes promising unusually high returns with little effort, urging people to verify how such platforms generate revenue before committing their money.