In the first six months of 2023 some 17,286 cases with intelligence indicating money mule activity were filed to the counter-fraud trade association Cifas‘ National Fraud Database. Of these, 3,881 involved young people aged 21 and under which now make up one in five (23pc) of all cases filed to the database that bear the hallmarks of muling.
Younger adults, including all aged up to 30, now account for 64pc of cases indicating money mule activity, and between January and June there were 11,015 cases filed that were indicative of money muling filed to that Cifas database. Hence, Don’t Be Fooled, work by the trade association UK Finance and Cifas, seeks to raise awareness of the dangers and consequences of becoming a money mule. Starting early and educating young people so they have the knowledge and skills to protect themselves, Don’t Be Fooled has developed free PSHE (personal, social, health and economic) resources for primary (aged 10 and 11) and secondary (aged 11 to 14) pupils about the dangers and consequences of becoming a money mule.
A money mule is someone who receives illicit money into their bank account and transfers it into another account, often in return for money or an expensive gift. Since May, schools across the country have signed up to trial resources to help students and parents alike learn how they can stay safe online and in person, protect their financial privacy and protect friends and family from money muling. Offered are lesson plans and assembly presentations, posters, flyers and other material for schools.
Criminals need money mules to launder the profits of their crimes and frequently target young people, who are often unaware of the consequences of them agreeing. The associations suggest that criminals are increasingly using social media to target young people; but youngsters are also approached in person, outside schools, colleges or sports clubs.
Allowing a bank account to be used in this way is a crime and can result in a criminal record and the account being closed. It can also lead to someone finding it difficult obtaining mobile phone contracts or accessing financial products and credit, including student loans, the associations point out.
Those who become money mules are often unaware that the cash they are laundering is used by criminals to facilitate serious crimes such as terrorism, drug trafficking and people smuggling.
Ben Donaldson, Managing Director, Economic Crime at UK Finance, said: ‘The criminals who commit fraud harm people by stealing their money and, often, robbing them of their confidence. The criminals who do this need people to launder the money they steal, and they often target young people to do so. Exploiting young people in this way is dreadful: the criminals are persuading them to break the law, and that can harm their future.
‘Our Don’t Be Fooled campaign helps schools to teach children about the dangers posed by this type of criminal activity, and how to keep their bank accounts safe in the future. Parents and guardians have an important role to play, too. Don’t Be Fooled has advice on how to help their kids stay safe, including never giving your bank details to anyone unless you really know and trust them.’
And Mike Haley, pictured, CEO of Cifas said: ‘Being asked to transfer funds from your bank account might sound harmless, but this is money laundering and therefore illegal. This can have serious consequences for those involved, especially youngsters who could find their bank account closed and have difficulty accessing credit or loans. It could even impact their future education and job opportunities.
‘Young people need to think carefully before allowing their accounts to be used to transfer money, and ask themselves whether it is really worth jeopardising their future opportunities and career just to earn some easy cash?’
