Known as ‘money muling’, the practice commonly sees criminals seek out bank accounts to buy or rent from others which are then used to move stolen or illegal funds, often targeting vulnerable people through fake job ads, social media or online scams.
NGM Group Head of Financial Crime Operations Craig Hollingsworth said cyber criminals were increasingly using social media to find unsuspecting money mules with the promise of quick cash.
“These criminals can be blatant, offering a few hundred dollars in payment to people who are willing to open an account on their behalf,” he said.
“They are scammers who are very good at exploiting people who may be too scared to refuse or do not understand that what is being asked of them is not just serious, it’s illegal.”
With more than 400 attempts made in July to open fraudulent Newcastle Permanent bank accounts, Mr Hollingsworth said that these criminals were relentless in their attempts to launder money.
“We take our responsibilities to prevent money laundering very seriously, so we have extremely rigorous processes in place to stop these fraudsters in their tracks,” he said.
“When these criminals realise they can’t get away with it through us they will simply try with another financial institution, which is why public awareness of these tactics and their consequences is so important.”
Red flags to look out for include:
• Being offered money just for opening a bank account.
• Being offered money for someone to "borrow" your bank details.
• Getting paid to move money that isn't yours.
• Pressure to act fast, without asking questions.
• A job offer that doesn't seem to have real business behind it.
With money laundering funding often linked to serious criminal activity such as illegal gambling, terrorism, child exploitation and drug trafficking the consequences for those involved can be severe,
even if the money mule was unaware of the crime. These may include:
• A criminal record that affects future employment, travel, housing, and visa applications.
• Frozen or closed bank accounts, including loss of access to legitimate funds.
• Banks declining or restricting future access to banking services.
• Debt, if stolen money has been passed on or you have been tricked into spending it.
• Police charges and even prison time for repeat or knowing involvement.
Mr Hollingsworth said that if it seems dodgy, it probably is.
“Your bank account is your identity, it’s not a product to rent out or hand over,” he said. “If someone is offering you easy money to move funds or open accounts there’s a good chance you’re being drawn into criminal activity, so the best thing to do is walk away.”
