One in five Brits report being approached by fraudsters attempting to entangle them in money laundering schemes. A concerning study by Virgin Money reveals that a fifth of adults have been asked to hold funds, apply for a loan under another person’s name, or open a new account, all for monetary gain.
This practice is commonly known as acting as a ‘money mule’. Money mule networks consist of individuals or accounts manipulated by criminals to launder money.
These offenders frequently exploit people to transfer stolen funds through their bank accounts, effectively concealing the money’s origin, some of which could be funding organised crime.
Recruiters for money mules are increasingly utilising social media to ensnare teenagers, students, vulnerable individuals, asylum seekers, recent arrivals in the country and those on lower incomes, with Generation Z being the most targeted group.
Recent research indicates that a third of adults are unaware of what a ‘money mule’ is. Many are oblivious to the fact that involvement in such activities could lead to a prison sentence of up to 14 years.
Not only that, but expert Jamie Wolff, from Virgin Money, explained that becoming a money mule can have a devastating impact on individuals, and wider society.
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He cautioned that it might be a tempting way to make quick cash, but it can have huge consequences. “This is not a sneaky way to make a few quid and then get a telling off if you get caught; this is serious business and can have huge consequences,” he said.
Wolff warned: “If you’re caught as a money mule, you could face up to 14 years in prison, lose your job or place in higher education, and access to financial products like your bank account, mortgage, and phone contract.”
More alarmingly, he cautioned: “You also open yourself up to a criminal network where those involved often make their own laws.”
When asked how they would react if unintentionally becoming a money mule, four in ten of respondents said they would notify the police, while 20 per cent would seek legal counsel. However, a concerning 15 per cent admitted they wouldn’t know where to turn to report the issue.
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On average, respondents said they receive around 10 messages claiming they had won a prize or were eligible to receive funds from a distant relative. Given the high volume of such messages, a staggering 82 per cent are worried about the prevalence of financial fraud.
To keep an eye on any suspicious activity, 24 per cent say they check their bank account daily. Yet, despite this vigilance, 12 per cent have still fallen prey to a financial scam.
Jamie added: “It’s important to highlight the signs to look out for when it comes to being targeted, which is why we’ve released five top tips to keep in mind. We take this issue very seriously and aim to educate and raise awareness to protect everyone from becoming victims of serious financial crimes.
“We’d urge anyone to think twice before agreeing to transfer money for someone else, because it could be the worst decision you ever make.”
EXPERT TIPS ON TO AVOID BECOMING A MONEY MULE
Question any requests to receive or move money
Even if it comes from a friend, family member or someone that you met online, ask questions. Don’t simply accept money into your account and agree to transfer it onwards – always ask for the reason why and make sure you feel comfortable with this.
Be wary of too-good-to-be-true opportunities
Watch out for job offers that promise easy money, especially if they involve receiving money into your bank account.
Protect your personal information
Don’t open bank or cryptocurrency accounts at someone else’s request, and never share your bank details, PINs, debit card or online credentials. You could be allowing criminals to use your account to launder the proceeds of crime.
Avoid online love scams
Don’t send money to online love interests, even if they send you money first. These are often scams designed to exploit your trust.
Stay informed and vigilant
Trust your instincts, if something sounds too good to be true then it probably is. If you are unsure about a situation involving money or your bank account, speak to someone that you trust or dial 159 to be securely connected to your bank.