€12m transferred by 3,000 'money mules' in first half of the year

According to FraudSMART, the majority of accounts used for laundering were mainly belonging to young adults aged between 18 and 24 years of age, with some being as young as 15. File picture

Money mules as young as 15 have facilitated the laundering of more than €12m through Irish bank accounts in the first half of this year, according to a new report.

The report from FraudSMART says more than €12m has been laundered through Irish accounts with the help of 3,000 money mules between January and June.

The number of money mules has almost doubled on the same period last year, with the average sums of money being laundered standing at about €4,000, according to the report.

FraudSMART is a fraud awareness initiative led by Banking and Payments Federation Ireland (BPFI).

Niamh Davenport, head of financial crime at the BPFI, said: “With our latest figures showing a sharp increase in the numbers of money mule accounts in operation, we are appealing to all consumers to be on high alert to the dangers of this crime. 

Those most susceptible to being targeted are often financially vulnerable groups including students, those who are unemployed and people in economic hardship. 

"And as the cost-of-living crisis deepens over the coming winter months, we are particularly concerned that criminals engaging in money mule recruitment will seek to capitalise on this.” 

According to FraudSMART, the majority of accounts used for laundering were mainly belonging to young adults aged between 18 and 24 years of age, with some being as young as 15.

Ms Davenport warned people can be easily caught out by the promise of quick money for something as simple as opening a bank account on behalf of a criminal, or to allow their bank account be used for the lodgement or transfer of money.

She added: 

People can be conned unknowingly or coerced into working with fraudsters through social media posts, seemingly legitimate job adverts or even be approached directly in person.” 

 “And while on the surface this may seem like a harmless crime to those who get involved, what the money mules often don’t realise is that behind the facade of the quick cash schemes are organised criminal gangs who use the money mule’s bank account to launder money they’ve stolen often from innocent victims they’ve scammed.” 

She said those who allow themselves to become money mules and who get detected risk getting a criminal record and sanction, but also may have future difficulties in accessing basic financial services such as opening another account or getting loans.

The report, to be launched on Wednesday, follows the revelation by gardaí last week that more than 4,000 people who have used Irish addresses are laundering money for a notorious west African-based criminal organisation, known as the Black Axe crime network.

'If an offer sounds too good to be true it probably is'

Gardaí estimate that up to €64m has been laundered through the accounts for the network, which is also involved in the trafficking of drugs and firearms.

Gardaí warned third-level students against becoming money mules cautioning that ignorance is not an excuse.

The penalties for the crime include a prison sentence of up to 14 years, a criminal conviction with a lifetime record, extradition to the country where the predicated crime took place, and not being permitted to open a bank account.

People are warned to be on their guard for warning signs such as being approached - either online or in person - with an offer of making easy money by an individual who only uses a social media handle and will not provide any identifying information.

Another tactic is advertising for jobs on online platforms offering seemingly easy or quick money but are, in fact, a recruitment front for money mules.

"It seems quite simple and at the same time quite lucrative, but the reality is that those who allow their bank account to be used are taking a huge personal risk," said Detective Superintendent Michael Cryan.

"More than that, they are in essence assisting ruthless criminals involved in human trafficking, people smuggling, terrorism, and even wars."

He warned that, in the end, it is the money mule whose phone number or bank account are linked to the transfer of illegal gains.

"If an offer sounds too good to be true it probably is. There is no easy money to be made."

Anyone who suspects they have been approached to become a money mule is advised not to provide any information and contact An Garda Síochána. Where an account has already been compromised, the account holder should contact Gardaí as soon as possible.