Malaysia

First online fraud ring run by Chinese nationals uncovered in Labuan raid

Thirteen Chinese nationals detained in what authorities describe as the first known case of such a group setting up operations on the duty-free island

Updated 6 months ago · Published on 06 Mar 2026 2:37PM

First online fraud ring run by Chinese nationals uncovered in Labuan raid
Police in Labuan have dismantled an online fraud syndicate operating from a double-storey residence on Pulau Buah - March 6, 2026

POLICE have broken up an online fraud syndicate believed to have shifted its operations to the duty-free island of Labuan in an apparent attempt to evade detection, following a raid that resulted in the arrest of 13 Chinese nationals.

The operation was carried out on Saturday at a double-storey house in Pulau Buah through a joint effort between the police and the Labuan Immigration Department after intelligence gathering and information received from the public.

Labuan District Police Chief Superintendent Mohd Hamizi Halim said preliminary investigations suggest the group relocated from major cities as part of a strategy to avoid scrutiny by law enforcement agencies.

"Initial investigations indicate the syndicate moved their operations from major cities to Labuan as part of a strategy to avoid detection by the authorities," he told Bernama today.

He added that this marked the first time police had detected a group of Chinese nationals running an online fraud operation on the island.

Authorities arrested 12 men and one woman, aged between 26 and 47. All suspects are currently being remanded as investigations continue under Section 420 and Section 120B of the Penal Code.

Four of the detainees are also being investigated under Section 6(1)(c) of the Immigration Act 1959/63 for failing to possess valid travel documents.

During the raid, police seized 21 computers and 83 mobile phones believed to have been used in the fraudulent activities.

Mohd Hamizi said further investigations were ongoing, including efforts to identify the masterminds behind the syndicate.

Since January this year, Labuan has recorded 26 commercial crime cases linked to online fraud, resulting in total losses amounting to RM688,319.50.

He urged the public to remain vigilant and to avoid sharing personal information or bank account details with unknown parties online. - March 6, 2026

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