Kuala Lumpur (Feb 5) - A large-scale fraud case involving Agrobank has led to the arrest of dozens of individuals, following confirmation that the bank suffered losses amounting to RM203.8 million. The figure was verified by Home Minister Datuk Seri Saifuddin Nasution Ismail, who said the losses stemmed from a fraud attack reported in November last year.
Earlier reports had indicated that Agrobank was probing a system-related incident with suspected losses of up to RM165.75 million. The latest confirmation shows the impact was significantly higher. Investigations suggest the stolen funds were channelled through hundreds of accounts — as many as 718 — spread across 19 financial institutions, including conventional banks and e-wallet platforms. Despite this, Agrobank has yet to disclose detailed information on how the fraud was carried out, and figures surrounding the case were initially treated as allegations.
According to reports, 47 individuals have been detained in connection with the case. Of these, three have already been charged under Section 424C(1) of the Penal Code, which relates to offences involving mule accounts. Under this provision, individuals found guilty of using bank accounts or payment instruments for illegal activities may face jail terms of between three and 10 years, fines ranging from RM10,000 to RM150,000, or both. Investigations into the remaining 44 suspects are still ongoing, with police finalising investigation papers with assistance from CyberSecurity Malaysia and Bank Negara Malaysia. Authorities have also confirmed that no Agrobank customer accounts were affected by the breach.
The case comes amid growing concerns over online fraud nationwide. Between 2020 and 2025, Malaysia recorded 209,300 cases of online scams, resulting in estimated losses of around RM8 billion. Telecommunications-related scams and e-commerce fraud have been identified as the main contributors to these losses.
In response, police have intensified enforcement under Sections 424A to 424D of the Penal Code, which carry heavier penalties to reflect the serious and organised nature of cybercrime. The government is also studying possible amendments to several laws, including the Penal Code, the Communications and Multimedia Act 1998, as well as legislation related to money laundering and terrorism financing. These proposed changes may introduce tougher penalties and asset forfeiture measures targeting scam syndicates, mule account holders and their accomplices, although details have not yet been made public.
For Sabahans, the case underscores the increasing risks of digital fraud as online banking and e-wallet usage continues to grow across the state. While no Agrobank customer accounts were compromised, the scale of the losses highlights the importance of public awareness, stronger safeguards and stricter enforcement to protect individuals and small businesses in Sabah, particularly those who rely heavily on digital financial services.
(Source: The Edge Malaysia)