The rise of Money Mules among young people
Catherine Alexander
Partner and Mortgage & Protection Adviser at GDA
It is so important for young people to be aware of unwittingly getting caught up in criminal activity as a money mule. A money mule is is a person who transfers stolen money on behalf of others, usually through their bank account. Criminals will make contact and offer cash to receive money into a person’s bank account and transfer it to another account, allowing them to keep a small portion of the funds.
Most mules enabling these crimes are young people under the age of 30. The criminals (known as mule herders) often target university or sixth form students when they most need their own money. This is particularly prevalent due to the pressures of social media and various manipulation techniques used by criminals promoting ‘get rich quick’ schemes. However, young people are often unaware of the consequences of being recruited as a money mule. If caught, the mule could end up with a criminal record for money laundering. This a serious crime that has devasting consequences - bank accounts can be closed and the person involved could have trouble opening a new one, it will impact the person’s credit report meaning that they have difficult getting a student loan or mortgage, and it could also end up in a prison sentence of up to 14 years.
Young people are often not only unaware of the consequences of being found guilty of money laundering, but also unaware of where this money is coming from and the activities involved in generating it. Most people would be appalled to know that they were in receipt of funds coming from activities such as drug and sex trafficking, terrorist activities, and other illicit means.
Spot the warning signs:
Contact from someone you don’t know trying to befriend you, especially online or in a messaging app.
Someone you’ve met online offering deals that sound too good to be true.
Job offers for quick and easy money with no experience necessary.
Anyone who asks to transfer money to your bank account for you to pass on to someone else.
Someone who wants to buy a valuable item from you and insists on paying by bank transfer.
If you or someone you know has been approached, break off all contact, don’t receive or move any money, and ask for advice from someone you trust. You can report the incident to the police by calling 101 or 999 in an emergency. You could also contact Crimestoppers anonymously. You can also report anything you suspect to be money muling on social media to the social media company itself, which would help to protect other users.
Learning more about how to protect yourself and others is the best way to combat this practice, and lots of the main banks offer free resources to help online. Remember, if it’s too good to be true, it usually is.
This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.
