Warning over 'money mules' scam

25 September 2008 07:30pm

Bank account holders have been warned about inadvertently acting as money mules for fraudsters following a jump in adverts trying to recruit people to carry out money transfers.

Payments body APACS said it had come across 873 adverts to recruit money mules during the first half of this year, 133% more than during the same period of 2007 and a 445% rise on three years ago.

A money mule or a money transfer agent is someone who is recruited by fraudsters who need to transfer money between countries. Because most fraudsters are located overseas, it is not possible to make cross-border transfers from the majority of online bank accounts.

Instead, fraudsters try to recruit people to act as agents, receiving money into their own bank accounts and then wiring it overseas, in exchange for a commission payment.

The criminals involved often pose as overseas companies and often have professional looking websites that make them look like legitimate organisations.

APACS has produced an advice guide to help consumers avoid getting caught up in scams of this nature.

Sandra Quinn, director of communications at APACS, said: "Criminals clearly aren't giving up and are turning to new and more sophisticated methods of transferring fraudulent funds out of this country.

"We urge consumers to be cautious about any unsolicited offers or opportunities offering the chance to make some easy money.

"By allowing your bank account to be used to receive and transfer funds, you will be acting illegally, even if you have had nothing to do with the actual theft of funds from another person's account.

"If you see an opportunity to make some easy money and the offer seems too good to be true, then it probably is."

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