New students face 'money mule' scam danger

Friday 26th September 2008

Students heading into university this autumn and looking for easy money are being warned of the 'money mule' scam, which could leave them with a criminal record for laundering.

More fraudsters are looking to hire people to transfer cash across borders, with 873 job adverts detected in the first six months of the year – more than double the amount last year and up 445 per cent on three years ago, data from the payments association Apacs reveals.

Money mules help to launder cash, by taking funds into their accounts, withdrawing it and wiring it overseas.

However, funds are transferred into the mule's account from innocent people's accounts – often taken through phishing emails - and when the banks catch up with the mules, they want the cash back.

Meanwhile the fraudsters will be overseas and out of touch.

Online fraud hit £22.6 million in 2007.

Being a mule also comes with the threat of a custodial sentence and giving your data to criminals puts you at risk of being a victim of identity fraud. Banks are also likely to close your account.

Apacs has found adverts for money mules in national newspapers and genuine recruitment websites as well as spam emails and fake websites.

And mules may not be aware they are involved in any illegal activity – criminals advertising roles such 'payment manager' and describing themselves as genuine international firms.

Students with plenty of time on their hands and access to the internet are often prime candidates.

Sandra Quinn, director of communications at Apacs, said: "By allowing your bank account to be used to receive and transfer funds, you will be acting illegally, even if you have had nothing to do with the actual theft of funds from another person's account.

"If you see an opportunity to make some easy money and the offer seems too good to be true, then it probably is!"

She added: "Anyone who has disclosed their bank account details or received funds into their account for what they think could be a money mule scam should contact their bank immediately."

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