Interviews

Warning to money mules

by Mark Rowe

Young people ought not to be tempted to commit fraud or fall for ‘too good to be true’ scams, says Cifas, the UK’s fraud prevention trade body. It’s released new figures showing that in the first nine months of 2016, young people committed 39,362 misuse of facility frauds. This compares to 27,861 committed by 31 to 50-year-olds who represent 38 per cent of this type of fraud. For both age groups there has been an increase compared to 2015 with the under 30 figure increasing by 948 cases and the older age group increasing by 1,593.

‘Misuse of facility’ fraud is where an account, policy or product is misused by the genuine account holder. The most common example is when an individual allows their bank account to be used to facilitate the movement of criminal funds. Often described as a ‘money mule’, individuals commit fraud by moving money through their own account and then to a third party, who is usually located in another country.

Other examples include selling your bank account, knowingly making a payment that will bounce, or opening credit card, retail accounts or mobile phone contracts where you have no intention of honouring the credit agreements.

Simon Dukes, Cifas, Chief Executive said: “Our figures show that young people are disproportionately at risk of this type of fraud. With Christmas only a few weeks away we want to warn young people, in particular students, to be wary of anyone approaching them in the student union or elsewhere with promises of cash for the use of their bank account.

“Criminals may make it sound attractive by offering a cash payment but the reality is that letting other people use your account in this way is fraud and it’s illegal. You may end up with an extra £200 at Christmas but you could also end up with a fraud record – it isn’t worth it. We want to send a clear message to try and deter young people from getting involved in this kind of activity.”

Commander Chris Greany, pictured, City of London Police and National Co-ordinator for Economic Crime said: “Criminals use money mules in an attempt to conceal or launder the money they have stolen from victims whose lives have often been irreparably damaged. Be under no illusion, by allowing criminals to use your bank account you are assisting them in their crime and running the risk of getting a criminal record that could greatly harm your future.”

Police point out the consequences of committing ‘Misuse of Facility’ fraud include the risk of a conviction for money laundering, which carries a maximum prison term of 14 years; and it could affect applications for a mortgage, credit cards, mobile phones and student loans.

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