An Analysis of Communication Initiatives to Combat Mule Account Problems in Malaysia

Abstract

Money muling is a fraud and occurs when a person receives money from a third party in their bank account and then transfers it to someone else in return of obtaining a commission. Whether voluntary or fall prey to these scams, housewives, students, college students, self-employed, retirees and unemployed individuals have all been associated with mule account activities. Therefore, communication by regulatory bodies such as Bank Negara Malaysia (BNM) is crucial to enhance awareness and educate society on mule accounts and anti-fraud prevention measures. The importance of social media in addressing the mule account issue is undeniable. This paper assessed the effectiveness of existing awareness and communication initiatives undertaken by BNM. A total of 201 individuals participated in this survey. Findings showed that majority of those involved in money mule activities are Malay males from the Klang Valley, aged in their 30’s with low education level and low to middle income level. Television, Facebook, and BNM’s website appear the top three sources of information on mule accounts respondents received from BNM. Overall, the awareness level is still low, and the existing awareness and communication initiatives are not fully effective. This study also recommends BNM to enhance the communication initiatives using social media, TV, radio, YouTube, and phone messages. In addition, BNM should target public places such as government agencies, shopping malls, public transportation stations and hospitals. The content should also be appropriate to the relevant demographics, especially those with high risk of involvement in money mule activities.