KUALA LUMPUR (Jan 27): The government managed to save only about 6% of the total RM542 million scam-related losses reported nationwide in 2025, despite new provisions under the Penal Code (Amendment) 2024 aimed at curbing mule account abuse, the Dewan Rakyat heard on Tuesday.
Home Minister Datuk Seri Saifuddin Nasution Ismail said related enforcement agencies were able to secure only RM34 million out of total reported losses amounting to RM542 million for the year, based on complaints lodged by victims.
“This means the money was intercepted before it could move through multiple layers of accounts. For this purpose, we applied Sections 424A, 424B and 424C [of the Penal Code (Amendment) 2024],” Saifuddin said during the oral question-and-answer session in response to a question from Yeo Bee Yin (PH–Puchong).
Yeo had asked for data on the number of individuals charged and convicted under the section of legislation, as well as the number of scam victims who managed to recover their money in 2024 and 2025 with the assistance of the police and Bank Negara Malaysia.
New Penal Code Sections 424A to 424D, approved in July 2024, target the misuse of mule accounts and payment methods often used by scam syndicates. The Act was also amended together with the Criminal Procedure Code (Amendment) Bill 2024 that granted police officers with a rank no lower than sergeant, the authority to seize or block transactions related to financial dealings.
Saifuddin said that under Section 424A of Penal Code (Amendment), a total of 51 cases had been reported. Of these, 20 cases have been charged in court, three were classified as no further action, seven were marked as “kemas untuk simpan” (kept on record), while 21 cases remain under investigation.
Under Section 424B, one case was reported and pending investigation. Section 424C recorded 10 cases, all of which are ongoing, while no cases have been reported under Section 424D to date.
Of the RM34 million recovered, RM17.5 million was frozen for investigation, and about 40% of that (RM6.7 million) had been returned to victims so far.
For comparison, he said the total amount of scam victims’ funds saved in 2024 stood at RM508,479.39.
Providing a breakdown of victim profiles for 2025, Saifuddin said individuals from the private sector accounted for the highest number of reported scam cases. This was followed by civil servants at about 8%, students at 8% — most of whom were involved as mule account holders, retirees at 7%, and business owners at 7.5%.
The overall reported scams included those from online financial crimes such as love scams, e-commerce fraud, non-existent loans, fake investment schemes and telecommunications-related scams, Saifuddin noted.
He attributed the 2025 improvements in detection and early intervention to the expanded operations of the National Scam Response Centre (NSRC) hotline 997 — which now operates 24 hours a day compared with during office hours previously, as well as to increased staffing.
“On average, we receive about 500 calls a day, and about half of these are genuine complaints,” Saifuddin said, adding that most cases fall under Section 424A.
He cited examples such as fake online loan scams, where victims are required to pay upfront fees before realising they have been deceived, as well as illegal money lending cases in which lenders retain borrowers’ ATM cards. In some cases, these cards are later misused to scam other victims.
Saifuddin said the government is currently refining standard operating procedures, including clarifying the 48-hour reporting window for prompt intervention, which has previously caused confusion among victims.
He added that enforcement efforts are also being strengthened through closer coordination among agencies, including Bukit Aman’s Commercial Crime Investigation Department, the Malaysian Communications and Multimedia Commission, the Ministry of Domestic Trade and Cost of Living, and other relevant bodies.
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