Financial Scamming and Fraud

Money Mules
Criminals recruit money mules to transfer illegally obtained money between different bank accounts.
Organised Crime Groups (OCG’s) endeavour to set up accounts, or gain control of existing accounts,
for the express purpose of moving proceeds of crime through a network of accounts in order to
obscure its final recipient. The money mule’s account becomes a ‘Mule Account’ used to launder
criminal funds. The money mule will receive the stolen funds into their account, then withdraw it and
transfer it to a different account (often one overseas), keeping some of the money in payment (Action
Fraud 2018).
Money laundering and mule accounts are not new; however, in the UK there has been an increase in
the numbers of young people allowing their bank accounts to be used to receive and move money
on behalf of third parties (Cifas 2017). Young people and students are particular targets as criminals
know they are often short of cash. The targets are approached and recruited through a variety of
methods, for example via the internet, social media, at school, university or clubs. In some cases, they
are approached by people they know and believe they can trust. They may be coerced by the offer of
money or believing they are doing someone a favour.
Key questions to ask if you
or someone you know is
approached:
• What is known about the
money: where has it come
from and how was it ‘earned’?
• Where is the money being
sent to?
• What is the money being used
for?
• Why is the sender not paying
the money into their own
bank accounts?
• Never give anyone your
Bank card, PIN, passcode or
password – Bank accounts
are private
• Don’t be lured or
persuaded to receive
money into your account
even as a one-off
• If you have been
approached, break off all
contact and don’t receive
or move any money and
contact your Bank
• Report the matter to
Action Fraud or the Police
Potential consequences:
Criminal record - Anyone allowing criminal funds to go through
their bank account is committing an offence of Money Laundering
under the Proceeds of Crime Act, 2002, which carries a sentence of
up to 14 years imprisonment and/or fine/community service.
Travel - Having a criminal conviction has serious implications
ranging from potential employment opportunities, to travelling
to other countries. Some countries, for example Canada and the
USA, can refuse entry on the grounds of even minor criminal
convictions.
Credit rating -Allowing a bank account to be used by an unauthorised person breaches the terms
and conditions agreed between banks and their customers. Such misuse may result in the account
being closed and a report being made to credit agencies, leading to a negative or poor credit rating.
Negative or poor credit ratings mean any financial transaction requiring a rating may be affected;
this includes opening another bank account or applying for a loan or mortgage.