Over €44 million (€44.1m) has been laundered through money mule accounts in the last three years H1 2024, according to new figures released by FraudSMART, the fraud awareness initiative led by Banking & Payments Federation Ireland (BPFI). Over the same period, FraudSMART members have identified almost 9,000 (8,932) money mule cases. While the amounts moved through these accounts vary, they typically range between €5,000 and €10,000 per case. The publication of these recent figures comes as FraudSMART, with support from Minister for Further and Higher Education, Patrick O'Donovan and the Union of Students Ireland (USI), launches 'Don't be a mule' campaign.
What is money muling?
Money muling is a type of money laundering.
A money muling is someone who transfers or moves illegally acquired money on behalf of someone else.
Criminals recruit money mules to help launder proceeds delivered from online scams and frauds or crimes like human or drug trafficking.
The majority of incidents involving current accounts belongs to those aged between 18 & 24.
Money mules are typically recruited through social media in what appears to be a friendly approach by the criminal offering "easy" money.
Money muling warning signs
- Beware if you receive an unsolicited email or social media message that promises easy money for little to no effort.
- Never agree to open a new account in your own name or use your own account in order to receive a transfer/inbound payments on behalf of anyone else.
- Money mule advertisements or offers might replicate a legitimate company's website and use a similar web address to create the impression of authenticity for the scam.
- Fake job offers - The role includes transferring money or goods/job duties are not specified, with no education or experience required.
What happens to money mules?
The criminal offense facing money mules is a terrorist financing offense under the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010.
Running the risk of a fine, a criminal record and a possible prison sentencing of up to 14 years are NOT the only consequences. You could also end up on a lifetime terrorism watchlist.
In addition to this, your Current Account may be blocked and will have several consequences such as;
- Impacting your credit rating, making it more challenging to secure loans and mortgages in the future.
- Your travel plans may be affected, as you may encounter difficulties travelling or securing a visa to work of live abroad.
- Furthermore, your career opportunities could be influenced, as you may undergo background checks.
Niamh Davenport, Head of Financial Crime, BPFI said: “Criminals are increasingly targeting teenagers and young adults through social media adverts and messages to recruit them as money mules in exchange for money or gifts. It is worrying that, according to our research, almost half (45%) of 18-24-year-olds reported that they, or someone they know, have been approached to use their bank account for money transfers. Even more concerning is that one in three (34%) of this age group report being willing to lodge or transfer funds using their own bank account on behalf of someone else in exchange for keeping some of the money.”
Ms Davenport continued: “It’s crucial that young people understand that this is not a ‘victimless’ crime and the consequences are severe for those who get involved. Most of the money transferred by money mules is the proceeds of crime, often stolen from innocent victims of scams, including text message scams and other types of fraud that our own friends and family can fall victim to. Worse still, this laundered money is often used by criminals to fund serious criminal activities such as terrorism, drug trafficking and human trafficking. This is why the penalties for money muling are so serious and can result in a criminal record.”
FraudSMART is highlighting the scale, dangers and consequences of money muling with support from Minister for Further and Higher Education, Patrick O'Donovan and the Union of Students Ireland (USI), with major campaign #DontBeAMule through Snapchat and TikTok.
In order to highlight the scale, dangers and consequences of money muling, FraudSMART have launched a major awareness campaign through Snapchat and TikTok, with support from Minister Patrick O’Donovan and USI. As students have return to college, the ‘Don’t be a mule’ campaign is warning young people and parents to be vigilant, highlighting red flags to watch out for.
Minister O’Donovan said: “The FraudSMART Money Mules campaign is a crucial reminder for students and their parents about the risks of being targeted by criminal gangs through social media and the serious, long-term consequences that can result in getting involved. College is such an important time for learning, making life-long friends and preparing for future careers so I’m calling on all students today to know the warning signs, protect themselves and avoid becoming caught up in money muling. I’m also calling on parents to be alert to the risks and talk to your children about this issue.”
Niamh Doherty, Vice President for Welfare, Union of Students in Ireland added: “The new college term is an exciting time for many students, but it is also frequently a time of increased financial pressure, and we understand the temptation of offers to earn ‘quick and easy money’. But we want to make sure students are aware of the risks of being coerced, conned, or tempted into working with fraudsters. It could affect your ability to get loans in the future or travel, including to Australia or on a J1. We know college can be a very expensive time and we urge any student worried about college expenses, or any other aspects of college life, to talk to their Students’ Union or College Welfare Office and they will be able to advise them on the supports available."
NEVER, EVER provide your Current Account or Debit Card details unless you are very familiar with and trust the individual.
REMEMBER Money Muling is completely traceable back to YOU!
