Growth in ‘money mule' fraud activity

APACS, the UK payments association, has revealed the increasing number of ‘money mule' recruitment adverts detected in the UK and reminded consumers of some simple rules to avoid being duped into helping criminals transfer money out of the country.

Recruitment adverts for money mules are becoming more common with the latest APACS data showing 873 detected fake ‘job' adverts in the first half of 2008, up 445 per cent over the last three years, and 133 per cent on last year.

A "money mule", or "money transfer agent" as it is sometimes called, is someone recruited by fraudsters needing to transfer money from one country to another. As most fraudsters are located overseas and it is not possible to make cross-border transfers from most online bank accounts in the UK, a money mule is required to launder the money. After being recruited by the fraudsters, money mules receive funds into their accounts and they then withdraw the money and send it overseas using a wire transfer service, minus a certain commission payment.

To help consumers avoid getting caught up in scams of this nature, APACS has launched an advice guide explaining how criminals go about recruiting people to transfer fraudulent funds abroad and the consequences of getting involved in this type of scam. The guide is available to download from apacs.org.uk and www.banksafeonline.org.uk

Sandra Quinn, director of communications at APACS, says: "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!

"Anyone who has disclosed their bank account details or received funds into their account for what they think could be a money mule scam should contact their bank immediately."

APACS advice to consumer to help minimise their chances of being a victim is:

Be cautious about any unsolicited offers or opportunities offering you the chance to make some easy money.

Be especially wary of offers from people or companies overseas as it is harder for you to find out if they really are who they say they are.

Take steps to verify any company which makes you a job offer and check their contact details (address, phone number, email address and web site) are correct and whether they are registered in the UK.

Never give your bank details to anyone unless you know and trust them.

Further help and advice about preventing online banking fraud is available at banksafeonline.org.uk