Experts discuss how to spot and stop money mule scams in this week’s Scam Watch with James Walker from Rightly and Louise Baxter from the National Trading Standards Scams Team.
A money mule is someone who lets someone else use their bank account to transfer money. The reason for letting someone use a bank account would be payment of some kind, usually keeping some of the money transferred for yourself. This sounds like a great freebie, however, if you get caught, you could get a criminal record.
READ MORE: Pensioner ‘gutted’ after handing over £3,000 to fraudsters
Criminals will use lots of mule accounts to make it harder for banks and police to track them down. Shockingly, around six in 10 mules are under the age of 30. They can be recruited online and in person. By using mules, criminals try to ensure that the consequences hit the mule, instead of them. This is financial exploitation – both of the mule and of the original victim.
How would you get caught up in this scam?
Criminals may try to take advantage of students or people using social media adverts. The adverts or emails will offer quick and easy ways to make money as part of a money mule scheme. Do not let anyone use your bank account.
Transferring any criminal money means you could get caught up in the criminal’s activity and then unknowingly get a criminal record as being part of the crime.
Criminals targeting people often seem friendly and may make you their friend. It feels like you are doing a friend a favour and not doing anything wrong. However, this is not the case.
The criminals want you to be part of the crime, they want to use your account so they can keep transferring criminal money, often linked to organised crime so that they can hide it and get it to its criminal destination without being spotted.
What is the money used for?
The money that you transfer is usually stolen. It can be used to fund lots of different crimes, like drug dealing, sexual exploitation, frauds and scams, human trafficking and even terrorism. It’s often organised crime.
Why would someone become a money mule?
Criminals often target people who are vulnerable because of what is happening around them (their situation) such as the cost of living crisis or poor mental health. People are in greater need of money more than ever right now and sometimes people have no idea they are being asked to or have committed a crime.
How are money mules caught?
Banks have systems in place to detect this sort of activity and they will then notify law enforcement authorities.
What happens if a money mule gets caught?
● Their bank account may be closed.
● They may find it difficult to get loans or phone contracts.
● They could go to prison.
How can I avoid money mule schemes?
● Be wary of strangers contacting you on social media.
● Do not give out your bank account details to anyone unless you know and trust them.
● Be wary of offers that are too good to be true, especially offers of easy money.
Signs to watch out for
Tell-tale signs that someone might be involved could be them suddenly having extra cash, buying expensive new clothes or top-of-the-range mobile phones and gadgets with very little explanation as to how they got the money. They may also become more secretive, withdrawn or appear stressed.
If you are worried that you or someone close to you might be caught up in money muling, you can contact Crimestoppers anonymously on 0800 555 111. Translation services are available on request.
Scambusters Mail bag – answering your scam queries
Question: I have received a text advising that I am entitled to a payment from the government due to the cost-of-living crisis. I just have to click on the link in the text, is this legitimate?
This sounds like it could be a scam. Some groups will receive payments to help with higher bills, including:
● £900 in total in three instalments in spring, autumn and spring 2024 to households on means-tested benefits
● £300 for pensioner households in the winter
● £150 to people on certain disability benefits, paid in the summer
The first instalment of £301 for those on means-tested benefits will be made between April 25 and May 17.
There will inevitably be loads of scams relating to this, preying on our vulnerabilities at this difficult time. Do not respond to a text that comes out of the blue. Check if you are eligible for these payments here. Never click on a link in a text.
Top tip
Be aware of communications out of the blue. Always check your privacy settings, do this regularly to make sure they’re up to date. If you receive a message from someone you know asking for money, double-check with that person another way, like calling them. Don’t share personal information, or information that could help a criminal scam you.
If you think someone is trying to get your personal information or scam you, report it to Action Fraud, the UK’s national fraud reporting centre by calling 0300 123 20 40 or by visiting www.actionfraud.police.uk. If you are in Scotland, contact Police Scotland on 101.
Remember: If you have received a text, you think is a scam then you can forward to 7726 or take a screenshot and send it to report@phishing.gov.uk. If you are receiving lots of unwanted phone calls or text messages you can also consider removing your details from data brokers, ensuring that you use a right to object to processing of your data. You can learn more about this on Rightly to stop the sharing of your data exposing you to scams. And you can take a free training course on how to fight against scams on www.friendsagainstscams.org.uk. The more we talk about scams the more we take away the shame.
