Don’t be a money mule

In 2019 CIFAS, a fraud prevention service in the UK, reported that the number of cases of 14 to 18-year-olds who had allowed their bank accounts to be used to divert funds had grown by 73% in just two years. CIFAS have now reported that numbers in the age group 21-30 are on the rise as criminals target those struggling to make ends meet because of the COVID-19 pandemic. In 2020 there were over 17,000 cases of suspected money muling activity involving 21 to 30-year-olds.

Money mules are recruited to help criminals launder money, or in other words, take money obtained through criminal activity and make it appear to have come from a legitimate source. This is done by passing the money through a complicated sequence of bank transfers or commercial transactions. 

Money mules are recruited to transfer illegally obtained money between different bank accounts. They are targeted by fake job adverts or social media posts, promising that money can be gained through little or no effort. 

The scam relies on the victim agreeing to share their bank details so that cash can be deposited into their account. They are then asked to withdraw and transfer the money to a different account, often overseas. The victim gets to keep some of the money for themselves as payment.

But the real cost of being a money mule is far greater than victims realise and can last a lifetime. CIFAS reports that those who try to quit may be threatened with violence by the criminals who recruited them. If caught by the police, it has a serious, long term effect on their credit rating and future employment prospects. Even if the money mules are unaware that the money they transferred was illegally obtained, they played a key role in the fraud and can still be prosecuted – and face up to 14 years in prison.

How can you protect yourself and your family?

Do:

• Be wary of adverts offering higher than normal rates of pay for jobs, particularly stay at home jobs. If it sounds too good to be true, it usually is.
• Know that ignorance is not a legal defence. Even if a mule is unaware that the money they transferred was illegally obtained, they will still be prosecuted.
• Watch out for young people in your family suddenly having extra cash, or becoming secretive, withdrawn or stressed.
• Speak to members of your family about money mules so that they understand the scam and how they can protect themselves. Make sure you all know to keep your bank details safe and to be cautious of unsolicited offers of making money with little or no effort. 

Don’t:

• Respond to job adverts or social media posts that promise large amounts of money for very little work.
• Accept a job offer if the prospective employer asks you to use your own bank account to transfer their money. A legitimate employer would never ask you to do this.
• Accept money into your account if you don’t know where it’s come from, and don’t forward it on. 
• Share your bank details or any personal details including your mobile number with someone you don’t know.
• Give your personal or financial details to anyone you don’t know and trust.

If you think you’ve fallen victim to this, or any other, scam, please report it immediately to Action Fraud by calling 0300 123 2040 or online. Please also inform us as soon as possible by emailing us at webfraud@alrayanbank.co.uk, calling us on 0808 278 7183 or visiting us in branch.