KUALA LUMPUR: Online criminals are preying on young, financially disadvantaged people, recruiting them for 'money mule' accounts.
The Securities Commission (SC) reports that individuals aged 21 to 30, along with those from low-income backgrounds, are prime targets. Many remain unaware of the legal repercussions when their accounts are exploited for criminal activities.
These money mule accounts frequently feature in fraudulent investment schemes that promote products like shares and cryptocurrencies through social media.
"These mule bank accounts play a crucial role in most scams in Malaysia and around the world.
"Scammers or their representatives use social media platforms like Facebook to seek individuals interested in 'renting' their bank accounts for a fee.
"The payments may be one-off, monthly, or commission-based, depending on the amount of money received through the mule bank account," said the agency.
The SC said that many individuals do not recognise the legal risks associated with their accounts being used for illegal purposes.
"Research on the formation of money mule accounts in Malaysia reveals that recruitment often involves promising offers of financial rewards aimed at desperate individuals in need of money," said the agency.
So far, authorities have taken enforcement action against 19 money mule account holders who received proceeds from illegal activities, resulting in fines amounting to hundreds of thousands of ringgit for each individual.
The SC advises the public to refrain from sharing bank account details, login IDs, passwords, or OTPs, to be cautious of job offers that request bank account information, to regularly monitor their account transactions, and to report any suspicious activities to their banks.