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Students warned of risks as over €44 million illegally transferred through money mule accounts

  • FraudSMART members identified almost 9,000 cases of money muling in the last three years
  • New survey shows almost half of 18–24-year-olds have been approached, or know someone who has been approached, to use their bank accounts to transfer money
  • As college term starts, students and parents warned to be vigilant to approaches online particularly through social media adverts promising ‘easy’ money
  • FraudSMART, with support from Minister Patrick O’Donovan and USI, is launching major campaign #DontBeAMule through snapchat and TikTok

 

Wednesday 18th September 2024 – Over €44 million (€44.1m) has been laundered through money mule accounts in the three years to H1 2024, according to new figures released today 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 today’s figures come as FraudSMART, with support from Minister for Further and Higher Education, Patrick O’Donovan and the Union of Students Ireland (USI), launches the ‘Don’t be a mule’ campaign.

A money mule is someone who receives stolen money or proceeds of crime into their bank account and transfers it into another account, often in return for money or an expensive gift. While people of any age are susceptible to becoming a money mule, FraudSMART members have observed that the majority of money mule bank accounts belong to those aged between 18 and 24 years of age, with some as young as 14.

New research conducted by FraudSMART reveals that:

  • Nearly half (45%) of 18–24-year-olds reported that they , or someone they know, have been approached to use their bank account to transfer money.
  • One in three (34%) 18–24-year-olds admitted they would consider using their bank account to lodge or transfer money on behalf of someone else, in exchange for keeping some one the money.
  • Awareness of the consequences of money muling is lower among 18–24-year-olds compared to older age groups. 25% are unaware that it could help fund other criminal activity, 38% do not understand they could face jail time, and 57% are unaware it could affect their ability to obtain international travel or work visas.
  • 61% of parents of teenagers surveyed said they have not discussed the risks of money mules with their children.

 

Young People are being recruited through social media adverts promising ‘easy’ money

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.”

Money muling has serious consequences and may result in a criminal record

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 a major campaign #DontBeAMule through Snapchat and TikTok

In order to highlight the scale, dangers and consequences of money muling, FraudSMART is today launching a major awareness campaign through Snapchat and TikTok, with support from Minister Patrick O’Donovan and USI. As students 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.”

Top things to look out for to avoid falling victim to money mule recruiters:

  1. Be very cautious of unsolicited emails or approaches promising opportunities to make easy money, particularly on social media.
  2. Thoroughly research any work from home opportunities and do not get involved unless you are sure the business is legitimate.
  3. Be particularly cautious of offers from people or companies overseas seeking ‘local/national representatives’ or ‘agents’ to act on their behalf as it is difficult to verify their legitimacy.
  4. Never give your bank account details to anyone unless you know and trust them.
  5. Never allow your bank account to be used by someone else.
  6. Never agree to open a new bank account in your own name in order to receive payments on behalf of a ‘friend’ or criminal.

 

If you have been approached to act as a money mule or have been a victim of this type of crime, report it to your local Garda Station and contact your bank. More information, alerts and tips can be found on www.fraudsmart.ie.