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Varsity, college students now face jail for providing mule accounts

PADANG SERAI: Legal action may be taken against students of higher-learning institutions who allow their bank accounts to be used as "mule accounts" by scam syndicates.

Home Minister Datuk Seri Saifuddin Nasution Ismail said this action could be enforced following amendments to Section 424 of the Penal Code, which provides a maximum of five years' jail, a fine or both, for those convicted of dishonestly or fraudulently assisting in the release of any demand or claim.

"There have been cases where we found university students who allowed their accounts, payment instruments and credit cards to be used by scam syndicates.

"We can take action against their accounts. With the amendments to Section 424 of the Penal Code, action can also be taken against individuals who allow their accounts and financial instruments to be used by syndicates," he said after the Home Ministry's Meet the People programme in Kampung Guar Lobak here today.

Saifuddin said there was an increase in cases of online scams, and the ministry would intensify awareness campaigns to prevent people from falling victim.

"I don't need to have 'denial syndrome'. The trend is indeed increasing based on complaints received. That's why one of the steps taken is to amend Section 424 of the Penal Code.

"The amendments now allow a police officer, upon receiving a complaint regarding online fraud involving a victim's account, to act swiftly to freeze the implicated account when the victim reports it," he said.

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