Can an innocent micro-businessman lose his livelihood due to a single RM110 scam transaction?

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An Innocent Micro-Businessman Can Lose His Livelihood Due to a Single RM110 Scam Transaction

A micro-businessman in Kuching has reportedly faced severe cash-flow difficulties and the closure of all his bank accounts following a single RM110 transaction linked to an internet scam. This situation arose when a student, who had been scammed, deposited RM110 into the businessman's account in July 2025. Subsequently, one bank closed the businessman's account without explanation, with another bank later informing him of the closure. The severity of the impact became apparent when the businessman discovered his micro-business loan application could not be disbursed due to a "blacklist" associated with his account, stemming from a police report lodged over the RM110 transaction.
Account Closure and Blacklisting

The incident began when a student from Johor, who had fallen victim to a scam, made a RM110 deposit into the account of Liaw, a micro food business operator. Towards the end of 2025, one of Liaw's banks closed his account without providing a reason. This was followed by another bank informing him of the closure of his account in the month prior to the statement. The issue escalated when Liaw attempted to disburse a micro-business loan, only to be informed by a bank that it could not be processed due to a "blacklist" linked to his account.
Impact on Business Operations

The blacklisting, initiated by a police report over the RM110 transaction, has had a devastating effect on Liaw's micro-business. He is now unable to accept online orders or conduct digital transactions, which are crucial for his operations. Liaw has since refunded the RM110 to the student and requested the withdrawal of the police report. However, he was informed that even with the report withdrawn, it could take a minimum of six months to be removed from the blacklist, indicating a prolonged period of financial disruption.
Banks' Shared Information Platform and Systemic Issues

Banks have implemented a shared information platform designed to flag accounts linked to scam reports across multiple institutions. While this measure aims to combat online fraud, it has inadvertently led to innocent account holders like Liaw being penalised. The current system is criticised for potentially wrongly punishing legitimate account holders and destroying their livelihoods through a "one-size-fits-all" approach.
Call for Greater Prudence and Investigation

There is a strong call for banks to exercise greater prudence and conduct more detailed investigations before blacklisting accounts. Critics argue that banks should differentiate between mule accounts used for illicit activities and legitimate business accounts. Failing to do so can result in what is described as a "financial death sentence" for account holders, highlighting the need for a more nuanced approach that protects individuals' rights to conduct their business and survive.

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Can an innocent micro-businessman lose his livelihood due to a single RM110 scam transaction?

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