KUALA LUMPUR, Aug 12 — Banks in Malaysia will apply additional requirements for new customer applications to weed out “mule” accounts scammers have used to transfer funds stolen from victims, said sources.

According to Free Malaysia Today, industry sources said this would likely involve making applicants provide documents showing their source of income or letters from their employers, in addition to just the MyKad now.

Banks will also pay special attention to students, housewives, and senior citizens who want to open accounts as these groups are most often targeted by scammers.

“Some are innocent as they are unaware of their personal data being used to open bank accounts, which are then operated by the scammers.

“There are also some who have been paid to open an account but are unaware these have been used to scam people,” one source was quoted as saying.

“Mule” accounts are used by criminals to conduct illegal activities, such as transferring or laundering money from fraud. These are often set up by a third party, known as a “money mule,” who may be aware of or unaware that they are involved in criminal activities.

Students, in particular, could also be asked to provide proof of acceptance to a college and show their student card when opening an account.

In 2022, a total of 12,659 people were arrested and charged with various offences related to the use of “mule” accounts, which parts of Malaysia still did not realise was a criminal offence.

Last year, authorities said 34,497 scam cases were reported nationwide, with losses totalling RM1.218 billion. 

https://www.malaymail.com/news/malaysia/2024/08/12/sources-banks-to-be-tough-on-new-accounts-as-mules-carry-scams-to-worrisome-heights/146715