Online fraud: amendments to Acts 574, 593 involving mule accounts to be tabled following cabinet approval

Law minister says move is necessary, part of government’s effort to curb cybercrime

12:31 PM MYT

 

KUALA LUMPUR – The proposed amendments to the Penal Code (Act 574) and the Criminal Procedure Code (Act 593) to address online fraud involving mule accounts will be tabled at the Dewan Rakyat after cabinet approval, said Datuk Seri Azalina Othman Said.

The minister in the Prime Minister’s Department (Law and Institutional Reform) said these amendments are necessary and that they are part of the government’s effort to curb cybercrime that involves account mules.

“The existing legislation does not provide any offence for account holders that allows their accounts to be used by others, nor is there any specific provision that empowers the authorities to block the scam victim’s money from being withdrawn or used once it is transferred to a mule account.

“Therefore, due to this loophole in the legal aspect as well as the urgent need to protect people from falling into online scams, the government is considering amending these two acts to better combat online crimes involving account mules comprehensively and effectively.

“These amendments will also see new offences created, as well as provisions to empower investigating officers to authorise bank account confiscation if the account is suspected to be involved in cybercrime,” she said during the Minister’s Question Time in the Dewan Rakyat today.

Azalina was responding to Jelutong MP R.S.N. Rayer regarding the government’s efforts to curb cybercrime, particularly involving account mules and amendments to cybercrime laws.

She added that the committee overseeing the amendment to the new law, chaired by her and the communication minister, has met three times this year.

“After thorough discussion and refinement, this new law aims to protect online users from various crimes, including scams, artificial intelligence-related offences, sexual offences, and deepfake-related crimes.

“Initially, we wanted to hold a seminar on this law amendment in September, and if the cabinet approves it in principle, we planned to table it here (in Dewan Rakyat) at the October sitting.

“However, if it is passed in Parliament and enacted, the implementation will fall under the Communications and Digital Ministries’ purview, respectively.”

Azalina added that there are over RM2 billion of losses recorded from online scam crime, which also shows an increase from 2022 until June 2024.

“Between 2022 and June this year, there were over RM2,651,321,398.34 in losses reported, as well as a 43.20% increase from RM85,112,1636.62 in 2022 to RM1,218,839,783.59 last year.

“Whereas, as of June this year, over RM581,359,978.13 in losses were recorded.” – July 4, 2024

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