Your Identity Used to Open a Mule Account?

How identity theft leads to mule account charges

It can start with a lost wallet, a photocopied IC or personal details shared with someone you trusted. Syndicates can get identity documents by theft, or by asking people to “lend” their IC for something that sounds harmless. ^[f1]

With your documents, the syndicate opens a bank account in your name. That account then receives and moves money from crime. You know nothing until the police contact you or you find accounts in your name you never opened. Police detected 46,048 mule accounts in 2023 and 50,295 in 2024. ^[f5]

The account is registered to your identity, so police see your name, IC number and address on the records. They may assume you opened it. Without proper legal help, that assumption can turn into a charge.

The law that applies

Section 424A of the Penal Code makes it an offence to have possession or control of another person’s bank account or payment card without lawful reason. The penalty is a fine of RM5,000 to RM50,000, 6 months to 5 years in prison, or both. ^[f3]

The point for you is who actually opened and controlled the account. If you did not, the responsibility lies with whoever used your identity. Your defence rests on showing you were not the person who walked into the bank and opened it.

This is different from other mule account cases, where the owner let their own account be used, knowingly or not. In your case, the question is whether you had anything to do with the account at all.

Building the identity theft defence

The identity theft defence can work in mule account cases, but it needs evidence. Your lawyer will look for proof in several places.

Bank opening records. Every new account leaves a paper trail. ^[f2] The bank keeps the application form and a copy of the IC used, and may have CCTV footage from the branch.

A lawyer can ask for these records. If the person who opened the account does not look like you, or the signature does not match yours, that helps show it was not you.

Where you were. Proof that you were somewhere else on the day the account was opened supports your defence. Work records, travel documents, phone location data or witnesses can show this.

IC loss or theft records. A report to the National Registration Department (JPN) that your IC was lost or stolen, made before the account was opened, sets a clear timeline. Even without a report, other proof of the loss can help.

Signature comparison. A lawyer can arrange for a handwriting examiner to compare the signature on the opening documents with your own. Clear differences support the identity theft claim.

What to do right now

Make a police report about the identity theft. ^[f4] This creates an official record of your claim. Make it with a lawyer’s help so it is worded properly and states clearly that the account was opened without your knowledge or consent.

Check all your accounts. Log in to every bank you use and confirm each account in your name is one you opened. Ask each bank whether any other accounts exist in your name.

Contact JPN. If your IC was lost or stolen, report it to the National Registration Department and keep the receipt. It helps set the timeline.

Gather proof of where you were. Find out when the fake account was opened and collect evidence of where you were that day. Attendance records, receipts and travel bookings all help.

Speak to a lawyer before giving police a statement. If police ask you to attend, go, and ask to consult a lawyer first. Raise the identity theft from your very first contact with the authorities.

Why you need to move fast

Banks do not keep CCTV footage forever. Branches may record over it after a while. The longer you wait, the harder it is to get the footage that could show someone else opened the account.

Your own proof of where you were also gets harder to find. Receipts are thrown away, memories fade and digital records get deleted. Acting quickly keeps the evidence your defence depends on.

A lawyer who handles mule account cases will know which records to ask for and how to preserve them before they disappear.

When the bank’s checks failed

Banks in Malaysia must follow identity checks (KYC) when opening accounts. ^[f2] This includes checking documents and meeting the person.

If someone opened an account with your identity, the bank’s checks may have failed somewhere. Either the person with your IC was not properly checked, or the documents were good enough to pass.

The bank’s own records of the opening can be evidence that you were not the person there. A lawyer can ask for them.

Sources

1. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)
2. Penal Code (Amendment) Act 2024, Sections 424A, 424B, 424C
3. Bank Negara Malaysia, Anti-Money Laundering Guidelines
4. PDRM Semak Mule Platform Statistics (2024)