The scam: Criminals are increasingly targeting young adults with money mule schemes, using platforms like social media, online gaming, and fake job ads to recruit unsuspecting victims.
These fraudsters offer ‘easy cash’ in exchange for access to personal bank accounts, luring individuals into moving stolen money, often without them realising they are committing a crime. However, the funds being transferred are often the proceeds of human trafficking, drug offences or cybercrime.
Although it may seem harmless, becoming a money mule can have serious legal and financial consequences, including damaging money mules’ credit scores, leaving them unable to open a bank account or take out a mobile phone contract, and in extreme cases, could see those convinced of acting as a money mule face up to 14 years in prison.
The data:
Alarming new data from Santander shows the rise in money mule cases:
- Santander UK handled 22,467 money mule cases in the 12 months between Oct ‘23-Sept ‘24, a staggering 32% increase from the previous 12-month period (17,055 cases were reported between Oct ‘22-Sept ‘23).
- 25–34-year-olds were the most likely to be targeted with 6,295 cases reported between Oct ’23 and Sept ’24, a 45% increase on the 4,335 cases reported by the same age group in the previous 12-month period.
- Cases involving individuals aged 18-24 have seen the next biggest increase at 26%, climbing from 3,684 in Oct ’22 – Sept ‘23 to 4,660 in Oct ’23 – Sept ‘24.
- Worryingly, the bank also reported that the cases it has seen include even young teenagers.
Chris Ainsley, Head of Fraud Risk Management at Santander, commented: “If someone offers you cash to use your account, irrespective of whether it’s a good friend or family member asking - or you see a job ad on social media promising high returns for little effort - walk away.
“Money muling is skyrocketing, especially among young people who may not realise they’re breaking the law and getting involved with dangerous people. Allowing criminals to move money through your account – whatever the reason – is a crime and can lead to serious consequences, including up to 14 years in prison. Don’t be fooled by the promise of easy cash or flashy social media posts – the risk isn’t worth the reward.”
How it works:
- A ‘friend’ or contact asks if you can help them transfer some money. Often, they will say that their own account is blocked, or you can earn money from allowing money to be deposited and then moved on.
- You agree to let someone deposit money into your account and move it on, as a favour or in exchange for keeping a “cut”, or you allow someone else to access your account to complete these transactions.
- Once the payment is completed, you have just assisted in moving fraudulent funds, which is money laundering and - inadvertently or not - you have acted as a money mule.
How to stay safe and what to avoid:
- Any job ads or uninvited offers to make money quickly. Steer clear of posts on social media sites that are vague and ask for your bank details as part of any application process.
- Being offered payment in exchange for ‘storing’ or transferring money using your bank account, or opening a bank account in your name, for someone else to use.
- Remember, your bank account must only ever be used by you.
ENDS
The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 30 June 2024, the bank had around 19,600 employees and serves around 14 million active customers, including 7 million digital customers via a nationwide 444 branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.
Banco Santander (SAN SM, STD US, BNC.LN) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Banco Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Banco Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. In the first quarter of 2024, Banco Santander had €1.3 trillion in total funds, 166 million customers, 8,400 branches and 211,000 employees.