A young student opened a bank account shortly before her 18th birthday - and was rewarded with an immediate €3m overdraft.

Christine Jiaxin Lee reportedly received the whopping AUS$4.6m (€3m) credit on her Westpac account due to a system glitch.

Rather than return to her bank to inform them of the extraordinary error, the now 21-year-old allegedly spent $1m of the funds 'on luxury handbags' over the last four years.

Between July 2014 and April 2015, the student - originally from Malaysia - allegedly overdrew on numerous occasions, totalling AUS$4,653,333.02.

Authorities have now caught up with the engineering student from Sydney claiming that she has broken the law by spending the bank's money.

Sydney City Local Area Command's CBD fraud unit issued a warrant for Ms Lee's arrest in March of this year, four years after their investigation began.

She was arrested at Sydney Airport on Wednesday en route to fly to Malaysia 'to visit her family'.

However, counsel for the Ms Lee argue that no crime has been committed as she simply used the overdraft facility that was given to her.

Her 21-year-old boyfriend, who she is living with as part of her bail conditions, has claimed to have no knowledge of the funds.

Online Editors