Avoid Financial Traps: Essential Tips to Dodge ‘Money Mule’ Scams

Imagine a friend who is experiencing issues with their own bank asks to use your account to receive and then withdraw or transfer money. Or perhaps at a social event, someone brags about earning £200 in mere weeks by simply moving some money around. Alternatively, you might come across an online ad promising easy money from a remote job.

Agreeing to any of these propositions could put you at risk of becoming a “money mule” – a term used by banks and law enforcement for someone who facilitates the transfer of funds obtained illegally, typically through their own bank account. Often, the funds deposited into your account come from an innocent victim of a scam, while the money you send out goes directly to criminals.

Criminals consistently seek out money mules, commonly targeting young individuals desperate for cash who may believe they are simply helping someone out. According to Santander in the UK, 31% of confirmed money mules using its services were aged between 18 and 24, with university students particularly vulnerable around the start of a new academic year.

Allowing someone else to use your bank account or transferring unknown funds should immediately raise suspicions. “There’s never a legitimate reason for someone to need access to your bank account,” states Laura Carter, Santander’s head of fraud customer experience. “Allowing this is essentially aiding money laundering.”

Laura Carter notes that while acting as a money mule might seem like a quick way to make money, the consequences can last for years.

“The account will be closed, and the individual involved will be placed on an industry-wide database,” explains Carter. “This can lead to major difficulties in securing credit, obtaining a mobile phone contract, or securing a mortgage in the future.”

Digital bank Revolut also emphasizes that facilitation of such transactions is illegal. “Whether you knowingly participate in these schemes or are an unaware victim, the legal repercussions can be severe,” it warns.

In extreme cases, those involved could face up to 14 years in prison.

Identifying the Scam

These schemes often occur face-to-face, warns Carter, so be cautious of unfamiliar individuals or casual acquaintances offering lucrative money-making opportunities.

Advertisements on social media using hashtags like #internetmoney, as well as job postings promising easy money for remote work, are common tactics used by scammers to recruit mules.

Typically, the so-called “friend” or “recruiter” will insist on using your account to handle money transfers.

Recommended Actions

Refuse any requests for access to your bank account or to facilitate money transfers under any circumstances.

If you find unexpected money in your account, do not touch or transfer it. “Contact customer support right away and report the transaction. Ignore any third-party instructions regarding these funds,” advises Revolut.

Always report any dubious activities to your bank and the police.