KUALA LUMPUR (Feb 4): Home Minister Datuk Seri Saifuddin Nasution Ismail confirmed on Wednesday that Bank Pertanian Malaysia Bhd (Agrobank) suffered a loss of RM203.8 million due to online fraud reported in November last year.

A total of 47 individuals have been arrested in connection with the case, with three charged under Section 424C(1) of the Penal Code for offences related to mule accounts, Saifuddin said.

While details of the Agrobank fraud were not disclosed, Section 424C(1) of the Penal Code provides that anyone using a bank account or payment instrument for illegal purposes can face three to 10 years in prison, a fine of RM10,000 to RM150,000, or both.

“Investigations into the remaining 44 suspects are ongoing, and the police are finalising their investigation papers with assistance from CyberSecurity Malaysia and Bank Negara Malaysia,” Saifuddin said in a written parliamentary reply. He added that no Agrobank customer accounts were involved.

Agrobank is fully-owned by the Minister of Finance Inc, with the Federal Commissioner of Lands holding one share, and is overseen by the Ministry of Agriculture and Food Security.

On Nov 13 last year, Agrobank issued a statement saying it was conducting a comprehensive review following a recent internal systems incident, without providing specifics. In December, The Edge, citing sources, reported that the system issue may be linked to a coordinated attempt to siphon funds from the bank using hundreds of accounts.

Saifuddin noted that Malaysia recorded 209,300 cases of online fraud from 2020 to 2025, resulting in total losses of nearly RM8 billion, with telecommunications and e-commerce scams accounting for the largest share.

He highlighted another case involving a non-existent investment scheme reported in February last year, which resulted in losses of about RM40 million. The case, being investigated under Section 420 of the Penal Code for cheating, involved a cryptocurrency investment scam in which digital assets worth about US$6.4 million (RM25.1 million) were transferred to multiple crypto wallets.

To combat online fraud, Saifuddin said the police have intensified enforcement under Sections 424A to 424D of the Penal Code, which carry heavier penalties reflecting the seriousness of organised cybercrime.

The government is also reviewing proposed legal amendments to tighten provisions under the Penal Code, the Communications and Multimedia Act 1998, and laws related to money laundering and terrorism financing, including stricter penalties and asset forfeiture for scam syndicates, mule account holders and accomplices.

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