Young people make up most of 700 'money mule' cases in 2021 

Young people aged 18 to 24 account for the bulk of over 700 ‘money mule’ transactions identified by the banks in the first half of this year.

Young people aged 18 to 24 years old account for the bulk of over 700 ‘money mule’ transactions identified by the banks in the first half of this year.

The scale of the scam, which involve funds totalling €5m, has prompted fresh warnings to young people and their parents about the dangers, including criminal prosecution, for allowing their bank accounts to be used by other people to move money.

Banking & Payments Federation Ireland (BPFI) said its FraudSMART awareness initiative had found that more than 700 incidents of money mule transactions had taken place in the first six months of 2021, with an overall value of €5m.

It said the vast majority of incidents involving bank accounts belonging to those aged between 18 and 24.  

BPFI chief executive Brian Hayes said: “Criminals are deliberately targeting teens and young adults when recruiting money mules so it is critical that this age group as well as their parents fully understand how these crimes operate and how they can avoid getting caught up in it.” 

He said criminals were conscious of the lack of earning opportunities available to youth people.

“This is pertinent now more than ever in the current pandemic with less part-time or summer employment opportunities available to young people due to public health restrictions,” Mr Hayes said. 

Criminals are very aware of this and very much seeking to capitalise on this.

He said money mules were typically recruited through social media in what “appears to be a friendly approach” by a criminal offering on the face of it ‘easy money’ in return for opening a new bank account on behalf of the criminal or using their bank account to lodge or transfer money.

“While money muling might initially appear to be an easy fix for those who are struggling financially or want to make some extra money, young people need to be aware that money muling is effectively money laundering and therefore a criminal offence,” Mr Hayes said.

He said that young people sucked in can find it difficult to end the relationship and even by subject to intimidation.

“The consequences of becoming involved in muling are serious and can have a lifelong effect,” Mr Hayes said. 

“Teens who are recruited as money mules can be threatened with violence or physically attacked if they do not continue to allow their account to be used by the criminals to transfer money.” 

This is in addition to the prospect of a criminal conviction and life-changing consequences in terms of having a bank account or seeking loans.

“As well as having a criminal record, money mules who are caught face having their bank account closed and will have difficulty opening another account and accessing loans or other credit facilities in the future.” 

He said they advised young people to familiarise themselves with the 'red flags' on money muling and what to look out for in order to avoid becoming involved.

“We are also alerting parents to the signs they can look out for and encouraging them to talk to their children about this issue,” he said.

BPFI warns young people never to open a bank account in their own name in order receive a transfer/inbound payments on behalf of someone they didn't know.

*For more advice see www.fraudsmart.ie.