BEAUFORT: Police here have uncovered a syndicate involved in distributing, buying and renting out ATM bank cards obtained from the public, particularly youths and recent school leavers, to become mule accounts for scam and illicit activities.
Outgoing Beaufort police chief, Supt Wong Leong Meng (
pic) said the Beaufort police Commercial Crime Investigation Department (CCID) became the first to foil such a syndicate in Sabah.
The syndicate would face action under Section 424A of the Penal Code for unauthorised possession or control of another person’s payment such an ATM card or bank account, targeting mule accounts and scammers.
The suspects sourced the ATM cards by renting, distributing or purchasing them directly from account holders.
“Especially young people and students who had just finished school. The account holders would hand over both the physical ATM cards and their PIN numbers in exchange for payments ranging from RM300 to RM500 each,” Wong told Daily Express, when contacted, Sunday.
“The female suspect was responsible for sourcing ATM cards for rent, which were then passed to the male suspect. He would subsequently hand over the cards to an individual known as ‘Udin’ in Kota Kinabalu,
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“The suspects received between RM100 and RM200 for each ATM card collected, while the main operator earned commissions of up to RM300 per card,” he said
He said many had unknowingly become “mule accounts” by allowing their ATM cards and bank accounts to be used for illegal activities.
“The account holders willingly handed over their cards and received commissions. That is why they can also be charged,” he said.
The ATM cards were subsequently handed over to syndicates and used in various scam operations.
“The modus operandi includes scams involving non-existent online sales, fake loan offers, investment scams, love scams and phone scams,” he said.
The arrests were made following intelligence gathered by police. He said the suspects were detained in front of a pet shop in Beaufort at about 7.30pm.
Wong who was promoted to ACP would be transferred to Sabah Police Contingent headquarters in Kepayan.
He would be succeeded by Supt Champin Piuh.
Following the arrest, Wong said police seized two mobile phones, four ATM cards and a Perodua Kancil during the operation. Both suspects were later remanded at the Beaufort Magistrate’s Court.
“The case is being investigated under Section 420 of the Penal Code for cheating and Section 120B for criminal conspiracy.
“While the male suspect, a Filipino national, was also charged under Section 6(1)(c) of the Immigration Act 1959/63 and Section 424A of the Penal Code.
“The male suspect pleaded guilty and was sentenced to four months’ imprisonment under the Immigration Act. He was also sentenced to seven months’ jail under Section 424A of the Penal Code,” he said.
Wong said police seized four ATM cards belonging to four account holders, all of whom are college students believed to have rented or sold their cards for commissions.
To a question, he said the syndicate is believed to have been active in Beaufort since early 2024, with operations linked to Kota Kinabalu.
“The syndicate is based in Kota Kinabalu. Suspects would travel to Beaufort to collect ATM cards from account holders.
“There are also local collectors in Beaufort, some of whom have previously been arrested in Kota Kinabalu,” he said, adding that most individuals involved are from Beaufort, Kuala Penyu and Membakut.
On legal action, Supt Wong said the case is initially being investigated under Section 420 and Section 120B of the Penal Code for cheating and criminal conspiracy.
“However, if there is insufficient evidence under Section 420, suspects may instead be charged under Section 424A of the Penal Code for possession of ATM cards belonging to others without lawful authority,” he said.
He explained that Section 420 carries a penalty of up to 10 years’ imprisonment, whipping and a fine upon conviction, while Section 424A provides for imprisonment, a fine, or both.
