MALAYSIA should consider imposing harsher punishments, including caning, to curb the misuse of bank accounts and disrupt scam syndicates, experts say, but warn that tougher penalties alone will not dismantle increasingly sophisticated and transnational fraud networks.
Following Singapore’s recent amendments to its criminal law introducing mandatory caning for scammers and discretionary caning for money mules, local stakeholders say similar measures could strengthen deterrence in Malaysia if paired with robust financial safeguards and enforcement reforms.
Consumers’ Association of Penang president Mohideen Abdul Kader was reported by The Star as saying Malaysia should seriously examine Singapore’s approach, arguing that corporal punishment would have a strong deterrent effect, even if its immediate impact is felt mainly by low-level actors.
“Imposing corporal punishment on mules would discourage individuals from allowing their banking facilities to be used for any purpose other than their own. It is crucial for the public to understand that a bank account is strictly for personal use, and that any abuse cannot be tolerated,” he said.
Mohideen noted that a single mule account could be linked to numerous scam victims and that overseas syndicates depend heavily on access to local bank accounts to move illicit funds.
“Even if the immediate impact falls on low-level actors, the cumulative effect is to reduce the pool of available local channels for fund transfers, making it significantly harder for overseas syndicates to operate,” he said.
Addressing concerns over disproportionate punishment, Mohideen said the objective was not necessarily to target overseas masterminds directly, but to weaken the local infrastructure that enables scams to flourish. He added that any law must clearly distinguish between deliberate enablers and individuals who are vulnerable or coerced, to prevent miscarriages of justice.
Bukit Aman Commercial Crime Investigation Department director Comm Datuk Rusdi Mohd Isa said he supports the introduction of tougher penalties similar to those in Singapore.
“The government is expected to introduce the Cybercrime Bill this year. It is timely as the Computer Crimes Act 1997 has not been amended since its enforcement,” he said.
“We are eagerly waiting for tougher punishments to be introduced to curb misuse of bank accounts and disrupt scam networks,” he added, noting that laws must evolve in line with changing criminal methods. “Our ultimate goal should be to curb scams effectively.”
Financial forensics expert Raymond Ram said Singapore’s move to introduce caning was primarily designed as a deterrent, sending a clear signal that scam-related crimes carry severe consequences.
“Singapore’s decision to introduce caning for scam-related offences was intended to send a strong signal that such crimes carry serious consequences, similar to how mandatory caning previously reduced loan shark harassment cases,” he said.
However, Ram cautioned that harsher penalties on their own would not significantly disrupt the business model of scam syndicates, which are structured to absorb losses at the mule level.
“Arresting and punishing local mules addresses the visible end of the crime but leaves the command structure and money flows intact,” he said, adding that low-level participants are easily replaced while leaders remain insulated overseas.
He said the most effective deterrent lies in rapid financial disruption through fast fund-freezing powers, stronger accountability for banks and telecommunications companies, and coordinated cross-border enforcement.
“When criminals believe stolen funds will be frozen quickly, accounts shut down and leaders arrested across borders, scams become harder, riskier and far less profitable,” he said.
Bar Council member New Sin Yew echoed the need for a broader, multi-agency response, warning that scams are becoming more technologically advanced.
“Scammers today are using artificial intelligence, deepfakes and highly sophisticated tactics. This is a multifactorial and evolving problem, and increasing punishment alone is insufficient,” he said.
Yew said combating scams requires close collaboration between law enforcement, financial institutions, payment gateways, technology firms, social media platforms, telcos, internet service providers and public education initiatives. He also highlighted the difficulty of enforcement when funds are rapidly moved overseas.
“Increased international cooperation is essential, even though it is challenging. Stronger penalties may have a role but they cannot on their own solve a problem that is transnational and technology-driven,” he said.
Crime analyst Kamal Affandi Hashim noted that Malaysia already has provisions for caning under Section 420 of the Penal Code, which covers cheating and dishonestly inducing delivery of property. However, he said enforcement depends on the availability of sufficient evidence.
He added that anti-scam efforts should not focus solely on punishment but also on supporting victims, many of whom may be unaware, targeted or misled into believing they are immune to scams.
“A three-pronged approach needs to be implemented: prevention through public education and media outreach; intervention via rapid responses such as the 997 hotline, bank freezes, legal assistance and timely legislation to help victims recover funds while culprits are punished,” he said. - January 9, 2025
