Mule Accounts in Malaysia: An Ongoing Financial Crime Threat January 2026, Faiezun Mohamad Faizal, AFCLab UTM Mule accounts remain a significant enabler of financial crime in Malaysia. Commonly linked to online scams, these accounts are used to receive, move, and withdraw illicit funds, making it difficult for banks and law enforcement agencies to trace the original perpetrators. Despite ongoing enforcement efforts and public awareness campaigns, mule account cases continue to rise, reflecting both the scale of scam activities and the persistent exploitation of individuals by criminal syndicates. What Is a Mule Account? A mule account refers to a bank account that is misused to facilitate illegal financial transactions. In many cases, the account holder is recruited by scam syndicates to allow their personal bank account, ATM card, or online banking credentials to be used to receive and transfer money obtained from fraud. These individuals may be deceived by promises of quick income, part-time work, or commissions for assisting with financial transactions. Once funds are received, they are quickly moved through multiple accounts or withdrawn in cash, obscuring the money trail and complicating recovery efforts. Although some account holders claim ignorance, Malaysian law treats the act of allowing one’s account to be used for criminal purposes as a serious offence. The Situation in Malaysia Official figures illustrate the scale of the mule account problem nationwide. Between 2022 and July 2025, Malaysian authorities identified 173,224 mule accounts linked to online scams and related financial crimes. By 2024, cumulative estimates indicated that more than 170,000 mule account holders had been detected, reflecting sustained recruitment activity rather than isolated misuse.[1]  This growth parallels a broader surge in online fraud. Police and regulators have repeatedly linked mule accounts to tens of thousands of commercial crime cases reported over recent years. As of the mid-2020s, online scams in Malaysia have resulted in reported losses exceeding RM1.9 billion, demonstrating how mule accounts translate directly into large-scale financial harm for victims.[2]  Earlier data shows that this trend has been building over time. Authorities recorded 29,769 mule accounts in 2021, while studies and police figures from 2020 already showed 17,157 cases involving individuals aged 21 to 30, indicating early vulnerabilities among younger account holders. [3]  Student and Youth Targeting Trends University students and young adults have emerged as a primary recruitment group. Law enforcement agencies report that individuals aged 17 to 33 are frequently targeted through social media platforms, messaging applications, and informal peer networks. Common recruitment tactics include fake part-time job offers, requests to assist with receiving or transferring funds, and claims that the account will only be used temporarily. In 2025 alone, authorities identified 2,381 youths aged 17 to 33 who had been exploited as mule account holders, many of whom were students in higher education institutions. [4]  Regional Observations Mule account activity is reported nationwide, but regional patterns have been observed. Johor has recorded multiple cases involving student account holders linked to online investment and phone scams, with individual cases involving losses of hundreds of thousands of ringgit.[5]  The Klang Valley continues to report high volumes of mule account activity, particularly among middle-income earners. However, students remain a key risk group due to financial pressures, frequent online engagement, and exposure to social media recruitment tactics.[6]  Legal Consequences and Enforcement Context Malaysia has strengthened its enforcement response as mule account misuse escalates. Individuals who rent out, sell, or allow the use of their bank accounts for illegal activities may face imprisonment of up to 10 years, fines, or both under the Penal Code and related legislation. [7]  Policymakers have cited the identification of more than 170,000 mule accounts and billions of ringgit in scam losses as justification for tougher penalties and closer cooperation between banks, telecommunications providers, and law enforcement agencies. Regulators have stressed that protecting the integrity of the banking system is essential to economic stability, particularly as Malaysia continues to rely on digital financial services. Beyond criminal sanctions, mule account holders may also face long-term consequences such as account closures, restrictions on future banking access, and inclusion in financial monitoring systems. Public Tools and Preventive Measures Public awareness remains a critical line of defence. The Semak Mule portal, operated by the Royal Malaysia Police, allows users to verify bank account numbers, phone numbers, and company names associated with reported scams. Since its launch in 2020, the portal has recorded more than 33 million visits as of early 2025, indicating widespread public reliance on the platform before making financial transactions. Authorities have progressively expanded the portal’s coverage to include business entities suspected of involvement in investment and commercial scams.[8]  Banks and regulators continue to advise the public not to share banking credentials or allow others to use their accounts, regardless of the incentives offered. Impact on Individuals Becoming involved in a mule account arrangement can have serious consequences, even beyond criminal charges. Account holders may experience frozen bank accounts, difficulties opening new accounts, damaged financial records, and prolonged investigations. In some cases, individuals only realise the severity of the situation after their accounts are flagged during police or bank inquiries. These outcomes highlight the importance of understanding that financial responsibility does not end with account ownership. Allowing misuse, whether knowingly or through negligence, carries lasting consequences. Conclusion Mule accounts remain a fundamental enabler of online scams in Malaysia. The available data shows a sustained rise in account misuse, significant financial losses, and a clear concentration of risk among students and young adults. While enforcement and regulatory measures have intensified, prevention depends heavily on public awareness and responsible banking behaviour. Understanding recruitment tactics, recognising legal consequences, and using official verification tools are essential steps in reducing the misuse of mule accounts and protecting the wider financial system. References [1] BERNAMA, “Over 173,000 Mule Accounts Identified As Of July 2025 – Shamsul Anuar,” BERNAMA, 2025. https://www.bernama.com/en/news.php?id=2460750  [2] BERNAMA, “Rise In Online Fraud Cases, Over RM1.9 Billion In Losses As Of September – Shamsul Anuar,” BERNAMA, 2025. https://www.bernama.com/en/news.php/crime_courts/world/news.php?id=2479495  (accessed Jan. 16, 2026). [3] Saharan, Mohd Shafiz, Jamaludin, Mohd