To refresh your memory, we previously reported that Agrobank was investigating a system incident that resulted in suspected losses of up to RM165.75 million. Just yesterday, on 4 February, Home Minister Datuk Seri Saifuddin Nasution Ismail confirmed that a fraud attack reported in November last year caused Agrobank to lose RM203.8 million.
For those unfamiliar, previous reports indicate that perpetrators syphoned the funds from the bank using hundreds of accounts (up to 718) across 19 financial institutions, including both banks and e-wallets. However, Agrobank has not released the specific details of the fraud, and the reported figures remain allegations.
According to The Edge Malaysia, authorities have arrested 47 individuals connected to the case. Saifuddin said that authorities charged three of them under Section 424C(1) of the Penal Code for offences related to mule accounts. Section 424C(1) specifically states that anyone who uses a bank account or a “payment instrument” for unlawful purposes may face imprisonment of three to 10 years, a fine of RM10,000 to RM150,000, or both.
Saifuddin added that “investigations into the remaining 44 suspects are ongoing, and the police are finalising their investigation papers with assistance from CyberSecurity Malaysia and Bank Negara Malaysia.” The minister also confirmed that no Agrobank customer accounts were compromised during this incident.
RM5 Billion Lost In Five Years
Related to this, Saifuddin mentioned Malaysia has recorded 209,300 cases of online fraud from 2020 to 2025. This has resulted in total losses of around RM8 billion, with telecommunications and e-commerce scams among the largest contributors.
Authorities Will Enforce Harsher Penalties
Saifuddin said the police have stepped up enforcement under Sections 424A to 424D of the Penal Code to address online fraud. The sections impose heavier penalties in recognition of the seriousness of organised cybercrime.
Additionally, The Edge Malaysia noted that the government is looking into proposed legal amendments to tighten provisions under the Penal Code, the Communications and Multimedia Act 1998, and laws related to money laundering and terrorism financing. These amendments would include stricter penalties and asset forfeiture for scam syndicates, mule account holders and accomplices. However, the specifics of these revisions remain undisclosed at the time of writing.
(Source: The Edge Malaysia)
