BSN Returns RM13.52 Million to Investment Scam Victims

Bank Simpanan Nasional has paid RM13.52 million to victims of an investment fraud linked to a former employee at its Kuching branch.

The payments represent 88.6% of RM15.27 million in reported claims, the ministry said in a written parliamentary reply on 22th Oct. The remaining cases are being reviewed to establish the legitimacy of the claims, verify the origins of funds and ensure that payments reach the rightful recipients.

More than 70 victims reported losses exceeding RM11 million after discovering that their savings had been transferred to unauthorised accounts between 2024 and 2025. The alleged misconduct involved a former BSN employee, bringing the integrity of internal banking controls into focus.

The Ministry of Finance said the review of outstanding claims was necessary to prevent duplicate payments and ensure that compensation was supported by sufficient evidence. The process also aims to establish the amounts owed to individual claimants before further disbursements are approved.

The ministry was responding to former deputy minister of Domestic Trade and Consumer Affairs Chong Chieng Jen, who questioned why the government had allowed BSN to withhold refunds over concerns about the origins of funds that he described as unsubstantiated.

BSN has stated that it remains committed to resolving the outstanding claims. However, the latest figures underline the distinction between identifying victims, establishing the extent of their losses and completing the compensation process.

For affected customers, the recovery of funds is a critical step towards restoring financial stability, particularly when the money involved represents accumulated savings rather than speculative capital. The time taken to verify claims can also add to the uncertainty faced by victims who are waiting to recover their money.