Students told to beware offers of easy money as reports of money laundering rise

Don’t be a student sucker: Youngsters warned over offers of ‘easy money’ as more are tempted into laundering cash for criminals via current accounts

  • Reporting body Cifas said there were a record 364,000 reports of fraud in 2019
  • A large proportion of these were cases of suspected ‘money muling’ 
  • This is where people are convinced to accept money in their bank account
  • This is usually in return for payment or offers of easy money, with those under 30 making up three fifths of cases of suspected money muling last year 

There are fears students potentially isolated due to remote learning in the wake of coronavirus are being targeted by criminals looking to launder money through their bank accounts.

Last year, there was a spike in ‘money muling’ by those under 30 and the problem is now at record levels, according to Cifas.

The number of cases of suspected fraud reported to the prevention service rose to an all-time high of 364,643 in 2019, nearly 84,000 of which were classed as ‘misuse of facility’.

Close to three quarters of these cases, the number of which had risen 64 per cent in the last five years, were reported after banks saw instances of suspected money laundering.

Money mule: The fraud reporting service Cifas said cases of suspected money muling involved people under 30, 62% of the time

Banks have become concerned that younger people are being increasingly targeted by criminals to act as money mules and let them pass ill-gotten gains through their bank accounts.

The data shows 62 per cent of cases of suspected money muling reported to Cifas involve people under 30.

Many are unlikely to be aware of the risk of applying for a job advert offering easy money or responding to a post on social media, or letting someone transfer money into their bank account and out again in return for payment.

Those hit with a Cifas marker, which This is Money has previously reported are sometimes unfairly applied, can be left with frozen bank accounts and the inability to apply for anything from a phone contract to a mortgage.

And those found guilty of money muling can even face a prison sentence of up to 14 years.

Three university students aged between 20 and 28 were sentenced to a collective 38 months in prison last September after they helped criminals launder £64,500 stolen in a scam from a woman in her eighties by passing the money through their bank accounts in return for payment.

Now, with the new university year around the corner and 18-21-year-olds particularly at risk of being targeted, banks have urged students to be on their guard.

Ross Martin, head of digital safety at Barclays, said: ‘It’s a prime time for fraudsters to be targeting young people with the lure of making easy money.

‘It might be particularly tempting given the current situation with the job market and the need for extra money if family finances are tight. 

‘Always do your research and check that the job is legitimate – don’t run the risk of damaging your future career and finances.’

Younger social media users are frequently recruited as money mules with the promise of making easy money.

Younger social media users are frequently recruited as money mules with the promise of making easy money.

Students have been warned never to allow a company to use their bank account to transfer their money or accept a job asking them to do so and to be wary of job adverts which seem too good to be true.

They should also avoid adverts on social media offering get rich quick schemes, and to speak to someone they trust if they feel pressurised into accepting money into their bank account.

Britain’s biggest bank Lloyds said it had frozen £41million of funds in more than 41,000 suspected money muling accounts since 2018, and that over the last three months seven in 10 people identified as money mules were under 30, with the largest age group being 18-21.

Its retail fraud director Paul Davis said: ‘Young people tend to be a much more popular target for fraudsters using fake job ads, targeted emails and social media ads promising cash in exchange for making bank transfers or withdrawing and depositing money.

‘We have seen some cases where scammers have targeted ‘mules’ as young as 16, and we’ve spotted the transaction that looked out of character for the usual activity on the account.’

The largest age group of those suspected by Britain's biggest bank Lloyds of being money mules were those aged 18-21. University students are believed to be especially at risk

The largest age group of those suspected by Britain’s biggest bank Lloyds of being money mules were those aged 18-21. University students are believed to be especially at risk   

Barclays previously found three in 10 reported money mules in 2018 were under 21 years old, with a 13 per cent rise in suspected accounts between 2018 and 2019.

Research has suggested large numbers of young people are unaware of the consequences of laundering money, whether wittingly or unwittingly.

Seven in 10 university students polled by Barclays said they were not aware of the consequences, while separate polling from Santander found the same number of people did not know what a money mule was.

The bank, which said more than half of all suspected mules were under 25 in 2018, found 27 per cent of people surveyed would click on a recruiting post they saw on social media offering them easy money.

Santander’s head of fraud strategy Chris Ainsley said: ‘It’s alarming to see not just how criminals prey on unsuspecting social media users, but how many people are unaware of what a money mule even is. It takes just a few clicks to become embroiled in this type of crime, but the consequences can have a lifelong effect.’