Almost 50% jump in cash passing through Irish money mule accounts

Students returning to college for the new term are being warned of the risks of being recruited as a money mule, as the amount of money transferred through mule accounts in the first half of the year was up almost 50 per cent.

A money mule is someone who receives criminal money into their bank account and transfers it into another account, often in return for money or an expensive gift.

Figures released today by FraudSMART, the fraud awareness initiative of the Banking and Payments Federation Ireland (BPFI), show that almost €17.5 million was illegally transferred through money mule accounts in the first half of 2023.

This is a near 50 per cent increase on the €12 million transferred in the first half of 2022.

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Niamh Davenport, head of financial crime with the BPFI said that the figures “may reflect increased levels of activity in text message scams and investment fraud observed by FraudSMART in recent months, as criminals seek ways to launder their profits”.

FraudSMART members identified more than 2,600 money mule accounts in the first half of this year. The average amount moved through the accounts was about €10,000, more than double the average amount observed in the first half of 2022.

The majority of money mule bank accounts continue to belong to those aged between 18 and 24 years of age, with some as young as 15.

As the new college terms start back, FraudSMART has warned all consumers, particularly students, to be vigilant to the risks and consequences of being recruited as a money mule.

Ms Davenport said that criminals frequently target young adults, through social media ads and messages as well as approaching them in-person outside schools, colleges, or sports clubs.

She warned that the consequences for money muling are “serious”, and can result in a criminal record.

Consumers are being warned to be cautious of unsolicited emails or approaches promising opportunities to make easy money, particularly on social media, and to thoroughly research any work from opportunities to make sure the business is legitimate.

FraudSMART advises to never give bank details to anyone you do not know and trust, and to never allow your bank account details to be used by someone else.

Those who have been approached to act as a money mule or who have been a victim of this type of crime are advised to report to their local gardaí and contact their bank.

FraudSMART is launching a new social media campaign through Snapchat and TikTok, #DontBeAMule, to raise awareness among young adults.

Also supporting the campaign, Minister for Further and Higher Education Simon Harris called on students to “know the warning signs, protect themselves and avoid becoming involved in money muling”.