Malaysia govt rubbishes claim that money stolen from bank accounts due to database registration

"PADU doesn't bring any benefits... Many have lost money after registering with PADU," reads a Malay-language post shared here by a Facebook account with more than 7,000 followers on February 8, 2024.

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Screenshot of the Facebook false post, taken from February 27, 2024

Pangkalan Data Utama (PADU), which translates to English as "Central Database Hub", is an online platform that aims to be a central data repository which will be used to distribute aid and targeted subsidies to Malaysians (archived link). 

Malaysians are given a three-month period until March 31, 2024 to update and verify their information with the national database hub. 

Since its launch on January 2, 2024, the system has received an onslaught of criticism and concerns from both the public and experts about its loophole, potential abuse and data security. 

Similar false claims about the potential impact of the system on bank accounts have been shared here, here and here on Facebook. 

'Fake' information

However, the country's ministry of economy said the claims were false.

In a post on the ministry's official Facebook page on February 8, 2024, it shared a screenshot of a false post with the word "FAKE" overlaid in Malay (archived link).

"Messages on Facebook and WhatsApp about losing money from bank accounts after PADU registration have been spread. If you receive a message like the picture shown, the information is FAKE," the ministry said in the post.  

"Be careful and check with official government channels before sharing any information from unofficial sources."

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Screenshot of Malaysia's Ministry of Economy statement, taken from February 27, 2024.

Malaysia's financial regulator Bank Negara Malaysia (BNM) said PADU is not linked to any banking information systems.

However, it told AFP on March 5, 2024 there have been a few cases where scammers used the name "PADU" in phishing scams that tricked victims into revealing their account information via instant messaging platforms.

"BNM urges members of the public to be extra careful with clickable hyperlinks received or shared through social media and messages from unknown phone numbers to avoid falling victim to scams," the central bank added. 

Malaysian police clarified on February 9 that some people in the eastern coastal state of Terengganu had lost money from their bank accounts to fraudsters and the case had nothing to do with PADU (archived link). 

The government said on February 23 that PADU was "very secure", and that it was constantly monitoring the system's data security (archived link).

Earlier in December 2023, the economy minister said that the database will not be integrated with bank information systems (archived link).