Rising online fraud poses data and asset loss risks for cooperatives

Online fraud is rising, exposing cooperatives to growing risks of data and asset loss. While digital transformation in the cooperative sector is progressing slowly, cyber security threats are increasing and scams are becoming more sophisticated, leading to substantial financial losses. Experts at a recent scientific seminar said infrastructure needs to be upgraded, digital capabilities strengthened, and security measures embedded to protect cooperatives and their members.

Seminar highlights need to link digital transformation with cyber security

On the afternoon of April 9, 2026, the Vietnam Cooperative Alliance, in collaboration with the Asia Foundation, assigned the Institute of Cooperative Economics and Policy and the Central College of Economics and Techniques to organize a scientific seminar on solutions to promote the application of science and technology, innovation and digital transformation, while ensuring information security in cyberspace for the cooperative and collective economy.

In opening remarks, Mr. Dinh Hong Thai, Executive Vice Chairman of the Vietnam Cooperative Alliance, said digitizing production and consumption processes is essential to raise productivity, standardize product quality, and support sustainable development. He added that ensuring information security in cyberspace is a continuous requirement.

“Rather than fearing cyber risks, we need to proactively identify threats to have appropriate preventive measures, helping cooperatives and members trade confidently, develop e-commerce, and have the skills to handle incidents arising in the online environment,” Thai said.

Digital transformation remains early-stage in cooperatives

Ts. Phung Giang Hai (Institute of Agricultural and Environmental Policy) noted that agricultural exports have grown and that the proportion of products participating in value chains reached over 31% by 2025. However, he said the level of digital transformation remains at an early stage, largely limited to basic tools such as QR codes and barcodes.

Smart agricultural supply chain model

Hai outlined a four-layer smart agricultural supply chain framework:

• Production applying technology to raise productivity.
• Data with shared systems for management and forecasting.
• Logistics for transport, processing, and preservation.
• Market access through digital platforms and e-commerce.

Survey shows low digital adoption and limited security readiness

Mr. Trinh Anh Tuan (Institute of Cooperative Economics and Policy) said digital transformation in the cooperative sector remains slow, uneven, and not linked to information security requirements. He cited survey findings from 200 cooperatives and more than 1,000 members across 30 provinces showing low digital adoption.

According to Tuan, activities such as electronic marketing, e-commerce, and online operations scored only 1.18–1.45/5, indicating an early stage of transformation. He also said key pillars remain limited, including customer experience (25.2%), operations (25.1%), and data (28.0%).

Key bottlenecks: infrastructure and human resources

Tuan identified two major bottlenecks: infrastructure and human resources. Many cooperatives lack governance platforms and centralized data systems and still rely on manual processes. He said ICT-trained personnel are scarce (about 1.08/5), even though smartphone usage is relatively high (4.67/5), suggesting access exists but application skills are insufficient.

Information security is “almost neglected”

He said information security is largely overlooked. Most cooperatives have no security policies, no data backup procedures, and lack basic protections such as access control or multi-factor authentication. This increases exposure to online fraud, account takeovers, and data leaks.

Recommendations: integrate security from the start and set minimum standards

To address these gaps, Tuan recommended building a dedicated digital transformation program for cooperatives that integrates information security from the outset. He also called for issuing a minimum standard set, supported by financial backing and the development of shared digital platforms, following the principle of “security by default.”

Fraud tactics evolve; prevention requires basic cyber hygiene

Mr. Nguyen Tien Dung warned that modern malware can incorporate AI technology and may bypass firewalls and antivirus software. He described common online fraud methods and the broad economic losses they cause, including cases where attackers hijack company emails or social media accounts to request payments, sometimes transferring funds abroad before the fraud is discovered.

For prevention, Dung recommended three basic principles:

• Do not click on links or files from unclear sources.
• Do not install unverified software.
• Isolate devices when suspicion arises and report to relevant authorities.

He added that organizations should strengthen network management processes, limit USB devices from unknown sources, and avoid drafting sensitive documents on internet-connected computers. Dung noted that even after disconnecting from the network, data can still be exfiltrated upon reconnection, making investment in infrastructure and a dedicated cybersecurity workforce important to reduce risk.