Inside the BSN Scandal: Bank Officer Stole Over RM11 Million from Victims

Reports of a large-scale fraudulent investment scheme allegedly linked to an officer from Bank Simpanan Nasional (BSN) have continued to escalate, with more than 70 victims now claiming combined losses of over RM11 million. The growing number of complaints has intensified scrutiny of the banks internal controls and raised concerns about how such misconduct could go undetected.

The information was disclosed by Michael Kong, special assistant to Stampin MP Chong Chieng Jen, after he accompanied several victims to the Tabuan Jaya police station in Kuching. He noted that the rising tally of losses was deeply troubling and reflected a significant failure in oversight mechanisms within the institution. According to him, the BSN officer at the centre of the allegations is currently under remand until 8 December as investigations continue.

Among the victims present at the police station was a family of three, known publicly as Dr Alex, his wife and his sister, who were attending an identification parade. Kong explained that the family had collectively lost RM700,000 after being persuaded by the BSN officer to invest in what they believed was a legitimate financial product. They later discovered that the investment did not exist.

Kong said the police station was crowded with other individuals who had also been summoned for similar identification procedures. As he spoke with them, it became increasingly clear that the same method had been used across the various cases. Based on their accounts, the officer had allegedly exploited his position and the trust associated with a state-backed financial institution to lure customers into depositing their savings into a sham scheme.

He added that this pattern of manipulation represented a major breach of trust, particularly for Malaysians who were simply trying to build financial security through what they believed were safe and regulated products. The fact that the alleged misconduct involved a staff member of a major national bank has further deepened public concern.

DAP, according to Kong, intends to continue supporting Dr Alexs family and the other victims throughout the investigation process. Their priority is to ensure accountability and to help the affected parties pursue both justice and compensation. He also called on the authorities and BSN to accelerate the investigation, secure all relevant evidence, and move swiftly to provide redress for those who lost their savings.

The case involving Dr Alex first came to light when he and his wife sought assistance from Chong Chieng Jen on 30 November. They had discovered that RM400,000 had been withdrawn from their Amanah Saham Berhad and BSN accounts. They were led to believe that the funds were being used to invest in BSNs Takaful Makmur scheme, a product they thought was genuine. The money, however, was never deposited into any authorised investment account.

Following media reports about the familys losses, more individuals stepped forward, stating that they too had been misled in a similar manner. Many of them had been approached by the same bank officer, who allegedly used his position to convince customers that the offers were officially sanctioned by BSN. These claims, taken together, point to a systematic pattern that investigators are now working to piece together.