Gardaí are investigating an international €2 million “money mule” laundering racket in which people are allowing their bank accounts to be used to transfer cash for criminals.
Some 200 accounts being examined are held at banks across the country and have been used for single transactions ranging from £5,000 (€5,798) to £35,000, says the Garda National Economic Crime Bureau.
The money is the proceeds of a “multi-million euro fraud” sourced from a series of account takeovers involving a financial institution outside the jurisdiction.
Europol, the Banking and Payments Federation of Ireland and the banks where the accounts are held are all co-operating with Garda investigators.
“This is an ongoing complex investigation,” said a Garda spokeswoman. “This investigation is in its very early stages and no arrests have been made to date.
More than 1,600 cases of money mule fraud were reported by banks in Ireland last year.
The chance to earn a “quick buck” is a tactic used by fraudsters to recruit money mules, say gardaí, with the account holders being promised a share of the proceeds.
Details of the fraud were released as the Garda unveiled a campaign warning students in particular about the dangers of allowing their banks accounts to be used for laundering.
Det Insp Catharina Gunne, of the Garda National Economic Crime Bureau, warned some money mules are unwitting victims. “They allow their account to be used for the transfer of ill-gotten gains. They may or may not be aware of the crime,” she said.
“Students are an easy target for the ‘money herders’ who run the racket, according to Det Insp Gunne. “They are often approached online, on campus, or while out socialising. If you agree to allow your account be used in this way you are committing the offence of money laundering.”