Police nab two siblings over mule account scam

GEORGE TOWN Police arrested two siblings, believed to be the masterminds of mule accounts syndicate that used other people’s bank accounts for fraudulent purposes, in a raid carried out on a house in Gelugor, here on Wednesday.


Penang Commercial Crime Investigation Department (CCID) chief ACP Mohd Rosni Mohd Lazim said that the two men, aged 20 and 26, were arrested in the 10 pm raid after police received information from the owner that there were several transactions in his account, amounting to RM800,000.


“The owner of the account, a man in his 20s, who had just returned from New Zealand after working in a factory there since last year, found that there were several transactions in his account involving RM800,000. Afraid and suspicious, he lodged a police report on the matter.




“Based on information from the man, he had opened four bank accounts before going abroad and registered the company with the Companies Commission of Malaysia (SSM) and handed over all the cards and documents to two men he met through his friend. The suspects allegedly informed him that the bank cards and documents were for ‘leasing’ purposes and he was promised RM500 every month,” he said at a press conference here today.


He became suspicious when he learned about the money and his subsequent failure to contact the siblings to get an explanation.


Mohd Rosni said following the arrest of the two siblings, the police seized nine debit cards from various banks, 14 cheque books, 10 company rubber stamps, 13 company registration documents registered with SSM and two mobile phones.



“Their modus operandi is to offer a sum of money to any local individual to ‘lease’ out a bank card for the purpose of money transfer transactions. Investigations also found that the syndicate used mule accounts for fraudulent loan cases, online purchases and online gambling.


“They also use floating cheques to deceive the victim into believing the loan has been issued, prompting the victim to make various advance payments for loan processing while SSM documents are used to convince the victims that the existing companies offering the loans and not individuals,” he said.


According to him, the police have also identified two other account owners used by the syndicate and investigations were ongoing as to how many individuals have fallen victim to mule account syndicate as well as cases of fraud.


He said the two men were remanded to assist in the investigation under Section 420 of the Penal Code and the police were also tracking down several other suspects believed to be involved in the syndicate.


“The police are advising the public against ‘leasing’ out their personal banking accounts to be used for criminal activities for easy money and those involved can be prosecuted,” he said.


Source: BERNAMA News Agency