Money mule scams: what they are and how to avoid them

Ever been asked to let someone borrow your bank account to move money? You might have even been offered a little cash for your trouble.

It might sound harmless, maybe even like a quick way to make money, but agreeing could land you in serious legal trouble. That’s because you could have accidentally become a money mule.

What is a money mule scam?

A money mule scam happens when criminals use money mules to move stolen funds and hide their tracks. Here’s how it usually works:

• someone asks to send money to your account
• they tell you to forward it to someone else or withdraw it
• they offer you a small cut for helping out

They might make up excuses to get you to do it, like saying that their own account is blocked.

But the truth is, engaging in this behaviour often makes you a money mule. You’re essentially helping criminals launder money. The original funds often come from scam victims.

Even if you didn’t know you were doing anything illegal, you could face criminal charges.

What do money mule scams look like?

Here are some common money mule scams to keep an eye out for:

• romance scams – scammers build fake relationships online and then ask for a “little favour”, like moving money because their account is “frozen” or they’re “travelling”
• fake job offers – ads for work-from-home roles like “payment processor” or “financial assistant” can be a red flag, especially if you’re told your job is to accept and transfer payments
• fake investment opportunities - you might come across "risk-free investment" ads where you're told you don't need to pay anything, just move money around, and you'll then recevie your cut of the "investment"

Who’s being targeted for this scam?

Young people are the main targets for this type of scam. In fact, new research from BioCatch revealed that 65% of money mules in the UK are younger than 30. Worryingly, around 22% of adults in the UK believe money muling is legal.

However, if you get caught out, you could still face legal consequences.

What are the red flags to watch out for?

Here are a few red flags to watch out for if you’re concerned about becoming a money mule:

• you’re asked to transfer or withdraw money you don’t recognise
• a “job” which involves moving money for other people through your account
• a new romantic interest wants help with financial transfers
• someone asks for access to your bank account in exchange for small payments

What to do if you think you’ve fallen for the money mule scam

If unexpected money lands in your bank account:

• don't transfer it or withdraw it even if you’re told to do so
• contact your bank immediately
• report it to the police

Never follow instructions from a stranger about money in your account, even if it’s not “yours”. Let the bank sort it out. It’s not worth the risk.