Banks Tighten New Account Regulations to Combat Rising Mule Account Scams
Picture Credit : NST
By Subaashinee Kupusamy,
PETALING JAYA, August 12: In response to the increasing misuse of mule accounts by scammers, banks in Malaysia have implemented stricter conditions for opening new accounts. Applicants are now required to provide detailed documentation, including proof of income or letters from employers, to verify their legitimacy. These measures particularly target students, housewives, and senior citizens, who are often unknowingly exploited by syndicates. Failure to provide the necessary documents results in the rejection of account applications, even if large deposits are involved.
The stricter regulations are part of efforts to curb online scams, which resulted in significant financial losses in recent years. In 2023 alone, 34,497 online scam cases were reported, amounting to losses of RM1.218 billion. The most common scams involved SMS contests, online impersonation, and fake law enforcement calls.
Students, in particular, face additional scrutiny, with banks requiring proof of college acceptance and student identification. Many students who have unknowingly set up mule accounts have been blacklisted, making it difficult for them to secure study loans and other financial services. The banking sector’s increased vigilance is aimed at preventing accounts from being used for fraudulent activities, whether knowingly or unknowingly.
These enhanced measures reflect the banking industry’s commitment to combating financial crimes and protecting customers from being drawn into illegal activities as stated in the Free Malaysia Today.
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