As more people become cash-strapped and desperate within the current, challenging economic environment, it’s becoming easier for criminals to recruit money mules.
Money mules move stolen money through their banking channel on behalf of criminals, and the number of people in South Africa suspected to be money mules has soared in the past three years. With increasing unemployment rates, people are looking to make money, even if it means being involved in something unethical or illegal.
While it may seem tempting for some, acting as a money mule is a criminal offence and anyone found to be involved in this form of illegal activity could face criminal charges.
How criminals recruit money mules
Nokuthula Motlhomi, head of transactional fraud at Standard Bank South Africa, says that criminals typically lure in victims by promising money in return for depositing physical cash made from illegal activities into their account and then transferring that cash into different accounts. In many instances, money mules may be scammed out of the money promised as well.
Another way of convincing victims into being money mules is under false pretenses.
Criminals won’t disclose that the funds are illicit but rather put forward an enticing reason that the person in financial need deems as a potentially harmless and profitable opportunity. These individuals know the weak spots of their targets and are often persistent in their approach.
Top targets for money muling
Motlhomi says that money mules may be recruited from a range of backgrounds, age and gender groups. “When recruiting, criminals may approach potential mules with an offer of seemingly legitimate employment that masks the illegal nature of the work. Alternatively, money mules may be complicit in the criminal enterprise. Ideally, they would target individuals without criminal backgrounds to better evade the scrutiny of authorities.”
According to the South African Banking Risk Information Centre (SABRIC), criminals also often approach people who may not have an existing bank account. Fraudsters will then provide them with the necessary documentation and ask them to open accounts for them to transact on their behalf.
“Because foreign nationals experience such difficulties and people want to be neighbourly, many people have been tricked into opening accounts that are subsequently used by criminals to launder money,” SABRIC guidance notes.
Consequences for individuals
“Acting as a money mule is a criminal offense, and mules could face severe consequences if caught,” Motlhomi says. “Most money mules can be charged in money laundering, and bank fraud. Depending on the fraud scheme, additional criminal charges may also be added.”
In addition, money mules could also damage their credit and financial standing, lose their job if employed or diminish any chance of being employable as they will be added to offender lists. They may even be held responsible for repaying funds lost by victims of fraud.
Motlhomi advises anyone who is approached to act as a money mule must think twice before agreeing to do so as the risks far outweigh the reward and to rather stop all communication and report the matter to their bank as well as the police.
“The best way to protect yourself from any online scam is to remain skeptical of anyone asking you for personal or financial information. If offered a job opportunity, make sure to conduct background checks on the company to check its legitimacy. A legitimate company will not ask you to use your own bank account to transfer money.”
Further to that, Motlhomi advises consumers to be aware of the following:
* Job descriptions and roles making reference to ‘Financial Transaction Control Analyst’ or similar job titles, detailing responsibilities such as transferring of funds to accounts indicated by our managers, and receiving and processing of incoming cash funds;
* Networks of debt ‘relief’ companies that scour Facebook pages to collect data on people in financial trouble. They often use fake celebrity endorsements to legitimise their criminal offering, promising debt relief in return for a phone call.
* Work-from-home job opportunities that may come in the form of an unsolicited email or social media message that promises easy money for little or no effort with no specific job description, communication with web-based email services (such as Gmail, Yahoo, Hotmail, Outlook), a request to open a bank account in your own name or in the name of a company you form to receive and transfer money, or a request from what seems to be your existing employer to receive funds in your bank account and then “process” or “transfer” funds via cryptocurrency wallets and the promise to keep a portion of the money you transfer.
If you suspect that your bank account has been used to transfer illicit funds, Motlhomi advises consumers to stop all communication, cease making transfer, contact your bank, and report the matter to the police.