Criminal gangs are increasingly targeting cash-strapped students with “money mule” schemes. In November, research from Cifas — a fraud prevention membership association — found a nearly 80 per cent increase in the number of bank accounts of people aged under 21 with signs of “money mule” activity.
Students struggling with the cost of living crisis are a target for criminal enterprises looking to exploit vulnerability, and more needs to be done to raise awareness to combat this growing problem. Yet research shows that 52 per cent of students do not know what a money mule is.
The police define a money mule as “a person who transfers stolen money on behalf of others, usually through a bank account” noting that “criminals often target vulnerable people who are likely to be in need of money”. In return for transferring the money, students receive a small sum and often those targeted do not realise they have committed a crime.
![A majority of students do not know what a money mule is](https://cdn.statically.io/img/www.thetimes.com/imageserver/image/%2Fmethode%2Ftimes%2Fprod%2Fweb%2Fbin%2Fcef521d4-8c4c-11ed-b24e-c1aaebfbdb8d.jpg?crop=6000%2C4000%2C0%2C0)
The scale of the problem is demonstrated by Cifas figures from 2018 that showed that three in every five students had been approached in person or online to receive cash into their student bank accounts.
Money mule schemes fall into the category of “misuse of facility” accounts, of which there were 79,000 incidents recorded to the national fraud database in 2021 – or a fifth of all recorded instances of fraud in the UK.
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UK Finance, a trade association, reports that the typical strategy is for criminals to post advertisements on legitimate job websites or social media using terms such as “money transfer agents” or “local processors”. To target a younger demographic they create profiles on social media, infiltrate popular groups and post images showing luxury lifestyles.
Acting as a money mule is handling the proceeds of crime, a form of money laundering. If caught, not only will an individual face the prospect of a criminal investigation and prosecution, but that person’s bank account will be closed and credit rating negatively affected. Even if unaware that the money received was illegally obtained, by accepting and transferring it an individual has played a role in money laundering and risks prosecution.
Action Fraud, the national reporting centre for cybercrime, has advised students on how to protect themselves. It is worth noting some of the best tips, such as advice that no legitimate company will ask for an individual’s bank account to transfer money. Likewise, students should research potential employers – particularly those based overseas – before handing over personal or financial details. And they should not respond to job adverts or social media posts that promise large amounts of money for very little work.
Mark Jones is a partner at the London law firm Payne Hicks Beach