In the last six years, over 160,000 ‘mule’ accounts have been identified, with more than £114m prevented from going to fraudsters, Lloyds Bank reveals.
A money mule is an account holder who is offered a payment, often by a scammer, to transfer money after it’s been illegally acquired through a scam. Or, the criminal activity involved in the transferral of the funds can also involve people trafficking and drug dealing.
Last year, the Government announced a crackdown on ‘muling‘, as around £10bn of illegal money is laundered in the UK every year, the National Crime Agency (NCA) found. This was part of 37,000 accounts identified to be used for illegal transfers.
Younger account holders are usually targeted, with over half (58%) of money mules aged under 40 years old.
Of those hired to shift cash for criminals, a quarter (24%) are aged between 19 and 25, with students struggling for money often looked at as being perfect candidates to go ahead with the illegal transaction.
While many younger people are approached to do the role, there has also been a 73% rise in those over 40 with money mule accounts, who risk facing up to 14 years in prison for the crime.
If you are found guilty of holding a money mule account, as well as a lengthy jail term, you will also be prohibited from holding a bank account for up to six years. In addition, you will be listed on the Cifas national fraud database, which keeps records of the biggest fraud risks in the UK.
The crime also carries a negative impact on your credit score, which later in life could prevent you from applying for a mortgage, loan, credit card or even phone contract.
Often, someone who is recruited as a mule will be unaware of their position in the crime network, as they’ll mostly be contacted by people they know or approached on social media, with an alternative reason given for the transaction request.
Whether you are aware of this or not, a hefty jail sentence can still be applied.
The nation in the UK with the biggest leap in cases was Wales, which saw the number of accounts in the year to July 2024 more than double.
However, in the East and the South East of England, those accounts also increased by sizeable rates of 75% and 70% respectively.
Greater London was the region with the most frozen accounts, holding almost a quarter (22%) of all the frozen money mule accounts in the UK.
Following the sharp rise in cases over the last six years, the provider has invested in specialist fraud investigators to spot suspect behaviours among its account holders.
With the technology, banks can scan millions of payments to hunt down unlawful activity.
‘Easy to be lured in’
Liz Ziegler, fraud prevention director at Lloyds Bank, said: “It’s vital that people are aware of these money laundering schemes and how easy it is to be lured in.
“Criminals are very good at making their illegal activities look like a real job opportunity and at tricking people into unknowingly recruiting family members and friends into becoming money mules.
“Fraudsters will keep the illusion of legitimacy up until the mule gets caught, then disappear, leaving the mule to deal with the fallout of unintentionally laundering money.”
Ziegler added: “Always remember – no legitimate company or person will ever ask you to use your bank account to receive and transfer their money. Do not do it under any circumstances; it’s not worth risking your own future by doing so.”
The lender provided four tips to ensure you do not become a money mule.
How to dodge becoming a money mule:
- Never receive and send money through your account on behalf of others or give anyone control of your account to do so themselves.
- Remember that no legitimate company or investment scheme will ask you to use your own bank account to transfer their money.
- Be cautious of unsolicited offers promising easy money, especially on social media, which is a key ‘hunting ground’ for mule recruiters.
- Remember that it’s not just strangers that can fool you into becoming a money mule – if a friend or family member unexpectedly asks you to accept or move money for them, ask plenty of questions so you can be sure you understand why they need your help. If in doubt as to where funds have come from, don’t take the risk.
