What happens if I am accused of online scam or money mule activity in Malaysia?

Online scams often depend on "mule" accounts: bank accounts that receive and pass on victims' money. Many account holders are students, job seekers or people in debt who were promised easy money for "renting" their account. Others did not realise their details were being misused. Malaysian law now targets mule accounts directly.

What are the money mule offences?

The Penal Code (Amendment) Act 2024 inserted new sections after section 424:

• Section 424A: having possession or control of another person's payment instrument (such as a debit card or online banking access) or bank account, without lawful authority or lawful purpose.
• Section 424B: giving possession or control of your own payment instrument or account to another person, directly or indirectly, without lawful authority or purpose.
• Section 424C: engaging in transactions using your own account without lawful purpose, or using another person's account without lawful authority or purpose.
• Section 424D: defines "financial institution" and "payment instrument".

Penalties include fines and imprisonment; for the most serious offences under section 424C, imprisonment of up to 10 years. Other offences may also apply, such as cheating under section 420 of the Penal Code, or money laundering charges.

How does an investigation usually start?

1. A scam victim lodges a police report and gives the account numbers they paid into.
2. Police trace the money through the accounts that received it.
3. The bank may restrict or freeze the account, and the police have powers under the Criminal Procedure Code to seize or prohibit dealings in money held in accounts suspected to be linked to an offence.
4. The account holder is called to give a statement, or is arrested.

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What should I do if I am contacted or my account is frozen?

1. Do not ignore it. Find out the investigating officer's name and the report number.
2. Get legal advice before giving a statement. Your explanation matters, and what you say can be used as evidence (see police statements).
3. Gather your records: bank statements, chat messages, job advertisements, any "agreement" to rent your account, and proof of where you were.
4. Do not move or withdraw disputed money. Do not delete chats or apps.
5. Stop all contact with whoever asked for your account, and do not give them any further details.
6. If your details were stolen, lodge your own police report and tell your bank in writing.

What if I am a victim of a scam?

Act fast. Call the National Scam Response Centre (997) or your bank immediately so that the money can be traced and accounts restricted, then lodge a police report. Speed improves the chance of funds being held.

Common mistakes

• Believing that "renting" an account for a commission is harmless.
• Opening accounts at someone else's request.
• Giving a long statement without advice, or giving inconsistent explanations.
• Contacting the person who "hired" you, which can look like collusion.
• Deleting messages, which can harm your defence and may itself be an offence.

When to speak to a lawyer

As soon as your account is frozen, you receive a police call, or you realise your account may have been misused. You can contact us; every case depends on its facts.

Frequently asked questions

I did not know my account was used for scams. Am I guilty?

The offences turn on lawful authority and lawful purpose, and on what you knew and did. Your explanation and evidence matter. Get advice before the statement.

Can I get my frozen account back?

It depends on the investigation and any court orders. Your lawyer can ask the investigating officer about the status and the proper process.

Can I be charged even if I did not keep any of the money?

Yes, the offences do not depend on whether you profited, although the facts are relevant to how the case is handled.

Will a scam victim sue me?

Victims may try to recover money through civil proceedings in some cases, in addition to any criminal case.

What if the person who used my account was a friend or partner?

The same principles apply. Tell your lawyer the full history so that it can be presented accurately.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Penal Code (Act 574), Attorney General's Chambers Laws of Malaysia
2. Criminal Procedure Code (Act 593), Attorney General's Chambers Laws of Malaysia
3. Government of Malaysia portal, NSRC 997 Hotline (National Scam Response Centre)
4. National Anti-Financial Crime Centre (NFCC), About NSRC

Fact-checked on 17 Oct 2026