Yes I did trade on localbitcoin. At last someone know what is going on.

The modus operandi of scammer is they will sell item at online market place. Usually much lower than market price. When the buyer agree to buy, the scammer give them my account no. Then the scammer will tell me they want to buy Bitcoin from me. The amount scammer mention will be the same amount as the buyer transfer. When check my account and received the money I will release the Bitcoin to their wallet. This goin on for about a month before I received complaint and realise my account have been use by scammer to complete the transaction.

I'm using a separate account to trade. Someone has correctly mention there is a centralised system that will notify every bank. I received notice from all the banks which I have saving and current inform me that my account will be close. They didn't freeze my account. All the bank did sent me a cheque of the remaining balance. (CIMB HLB RHB)

Those who have similar experience will understand what I'm going through.

I have went to all the account branch and they seems like not helpful at all. So I went to BNM today to seek for advice. They advice me to send email directly to all the bank's complaint department explaining the situation and enclose together with the 2 police reports. At the same time CC a copy to BNM. According to BNM they will response within few working days. If after the bank going through the police report and found I'm genuine and innocent they will allow me to open new account.

I will update again once the bank reply to me. Hope my bad experience can save someone from being the next victim and save them the hassle.