Fraudsters turning to ‘money mules’

Banks’ use of biometrics (fingerprint identification) to verify account holders has reduced identity theft and impersonation, but has also led to a rise in the use of “money mules” by fraudsters, the Southern African Fraud Prevention Service (SAFPS) says.

Money mules are used knowingly or unknowingly by people who either do not have their own bank accounts or wish to make a transaction invisible.

“People on street corners are recruited as money mules with the promise of quick payments for the use of their bank account,” SAFPS executive director Manie van Schalkwyk said.

“The danger for the consumer is that they are complicit in a criminal act and are getting involved with a fraudster. It might look like easy money, but the victim has no idea what the money is being used for and it is often for illegal gains and even human trafficking.”

While recruiting is sometimes at street level in South Africa, in other parts of the world much of it happens in cyber space.

Van Schalkwyk said the public should be vigilant about random offers of quick money in shopping centres and other public places as well as online offers of jobs for easy money.

“When you allow the use of your bank account as the middleman for third party banking you are in breach of your contract of account with the bank, and will be on record as a money mule,” he said. “You could be looking at a criminal record for life, and worse be party to the devastating crime of human trafficking.”

He said the SAFPS was working closely with all the banks “to ensure maximum security and awareness to get control of this growing fraud epidemic”. – ANA

The danger for the consumer is that they are complicit in a criminal act.