Rise in ‘money mules’ poses major challenge for law enforcement, financial services

Law enforcement officials have reportedthe rise in criminals using ‘money mules’ to commit their illicit crimes has posed a major challenge for them in their efforts to curb fraudulent activities.

According to First National Bank (FNB), in financial services – the concept of a ‘money mule’ refers to an individual who is  recruited by criminals to facilitate the movement of unlawfully acquired funds through their personal bank accounts or other means.

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Roshan Jelal, head of fraud at FNB Commercial, explained: “Money mule recruitment typically involves luring unsuspecting individuals with promises of easy money or job opportunities”.

Portions of funds as a commission

“These individuals are often unaware that they are participating in illegal activities. They may be asked to receive funds into their bank accounts and withdraw the money in cash or transfer it to another account or send it through alternative payment methods.

“In return, they are usually allowed to keep a portion of the funds as a commission.”

“The funds involved in money mule activities are often the proceeds of criminal acts, such as online scams, identity theft, bank fraud or money laundering. By using money mules, criminals attempt to obscure the origin of the funds and make it more challenging for law enforcement to track and seize the illicit proceeds,” he added.

Jelal warned that engaging in money-mule activities is illegal and can have serious consequences for the individuals involved.

“One could face criminal charges and imprisonment, lose one’s career, and legitimate income, and even suffer damage to personal reputation and brand,” he said.

Hence, it is essential for individuals to be aware of the signs of money mule recruitment and understand how to protect themselves from becoming unwitting participants in such illegal activities.

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Jelal encouraged South Africans to be vigilant and familiarise themselves with the concept of money mules.

He also warned them to be wary of unsolicited job offers. “Exercise caution when approached with job offers that involve receiving and transferring funds through your personal account. Be suspicious of any job that promises easy money or requires minimal or no effort,” he said.

Unusual requests

Jelal added that individuals with bank accounts should also question unusual requests. “If you get requests to receive money from unfamiliar sources or transfer funds to accounts unknown to you, be suspicious. Your bank account should only be used for activities you can vouch for,” he emphasised

South Africans were also told to protect their personal information and avoid using third-party devices to store credentials such as usernames and passwords. Equally, be mindful of the type of information you share on social media platforms.

“By staying informed, you can protect yourself from being exploited as a money mule. Remember, your awareness and proactive actions play a crucial role in combating financial crimes and creating a safer environment for everyone,” Jelal concluded.