Fraud: the rise of "money mules"

The term “money mule” is used to describe someone whose bank account is used to channel proceeds of crime so as to make the cash harder to follow and therefore recover.  The account holder will be offered perhaps a few thousand pounds for use of their bank account.  Criminals may target those who no longer need their bank account, for example students returning home after studying in the UK, or people who are in desperate need of cash, such as a company on the verge of insolvency.  The offer sounds like something for nothing but this BBC article highlights the significant impact on individuals who hand over their bank account details to criminals https://www.bbc.co.uk/news/articles/c2e7n2d29e9o.  

For victims of the original crimes, their money will near enough vanish through a series of transfers through mule accounts.  The use of money mules in conjunction with APP fraud (Authorised Push Payment fraud) is a particularly effective way of stealing money.

The best advice here is prevention is better than cure.  Ensure that:

1. If your bank calls you to discuss concerns about suspicious activity on your account, hang up and call back using the phone number on the back of your card or your bank's website (beware of number spoofing whereby a criminal spoofs the phone number of your bank to make their call appear legitimate);
2. Double check any bank account details provided to you, for example ones which appear to be from a supplier, by confirming them separately in writing and over the phone/video call with someone you know, particularly if the bank account details have changed from the ones used previously; and
3. Educate people in your life who may be at risk of or susceptible to becoming money mules, particularly through targeted advertising on social media. 

If you would like advice on this topic please contact: Nikki Bowker.