Ah Long: You gave your bank details, now you’re part of a crime ring?

SHAH ALAM – The rise of cyber Ah Longs, or online loan sharks, has plunged many financially strapped people into a vicious cycle of financial distress, where victims are not only exploited but unknowingly turned into accomplices.

By leveraging modern technology, these syndicates manipulate desperate individuals into creating or surrendering bank accounts, commonly referred to as mule accounts, which were then used for illegal transactions.

This tactic makes it difficult for law enforcement to trace and apprehend the real masterminds behind the scams.

Sepang district police Commercial Crime Investigation Department head Assistant Superintendent Muhammad Mahesh Kumar Risya Abdullah said the syndicates thrive by staying invisible.

“Ah Longs today never meet their victims in person. They operate from behind the scenes, while intermediaries handle all communications. Loan ads are seen by thousands and anyone desperate enough becomes a potential target,” he told Sinar Daily.

Mahesh said victims are often coerced into creating new bank accounts or handing over existing ones.

Sepang district police Commercial Crime Investigation Department head Assistant Superintendent Muhammad Mahesh Kumar Risya Abdullah

These are then misused for transferring or receiving illicit funds, putting the victims at risk of being investigated.

“Frustrated borrowers who’ve already paid substantial amounts may be manipulated into becoming mule account holders. They don’t realise they’re part of a larger scheme until it’s too late,” he said.

In many cases, Ah Longs avoid direct interaction altogether. Mahesh said they often use third-party delivery services to collect collateral or bank cards, further insulating themselves from exposure.

Victims are instructed to hand over not just their ATM cards but also their PIN numbers, giving intermediaries full access to their accounts and enabling syndicates to operate seamlessly in the background.

These schemes are designed to entrap victims in a continuous cycle of borrowing and repayment.

Sometimes, a second loan shark will appear under the pretext of offering help to settle the initial debt. Instead of relief, this only leads to deeper debt, sometimes escalating to as much as RM100,000.

“The syndicates are masters of manipulation. If they can’t pressure the borrower directly, they’ll go after their family members, turning the situation into both a psychological and financial nightmare. It’s not just about money anymore; it’s cyber extortion and emotional blackmail,” Mahesh said.

Tracking such syndicates is a major challenge for the police. Mahesh revealed that many victims fail to document or provide critical details, such as phone numbers, bank account numbers, or transaction receipts, making investigations harder.

“Loan sharks operate through multiple accounts. Often, by the time victims come forward, they haven’t kept track of which accounts they paid into. That delays and complicates our efforts,” he added.

To evade arrest, the masterminds surround themselves with layers of protection, employing networks of runners and mule account holders to act on their behalf. By the time police trace a fraudulent account, the syndicate has often moved on to another operation.

In July last year, the government has proposed stricter penalties for individuals involved in mule account scams, aiming to deter the growing issue of financial fraud. Under the proposed amendments to the Penal Code and Criminal Procedure Code, those who allow their bank accounts to be used for illegal activities could face up to 10 years in prison and fines up to RM150,000.

The legislation targets four specific offenses related to unauthorised control and use of bank accounts.

The proposed changes introduce varying penalties for different offenses.

Individuals who knowingly provide their bank accounts for illicit transactions could be fined between RM10,000 and RM100,000 or imprisoned for one to seven years or both.

Scammers found guilty of using or controlling someone else's account could face fines ranging from RM5,000 to RM150,000, with imprisonment terms extending up to 10 years.

These measures aim to address the increasing misuse of bank accounts in scams.

The government emphasises the importance of public awareness and vigilance in combating such scams.

Authorities have highlighted that even individuals who unknowingly become involved in mule account schemes can face severe legal consequences.