Money Mulling: Student Involvement in Money Laundering Schemes

1. Money Mulling
Student Involvement in Money Laundering
Schemes

2. Money Mulling
• As anti-money laundering systems improve and
law enforcement agencies become more stringent,
criminals are finding creative ways to make dirty
money appear legal.
• This unfortunately leads to students and young adults
as targets for criminals due to their naivety and the
appeal of easy money.
• Students must be wary of such opportunities for
fast money because it often involves suspicious and
likely illegal activity.

3. Money Mulling

4. What are Money Mules?
• Money mules are individuals used by criminals
to slip illegally obtained money past law
enforcement measures.
• Similar to drug mules, money mules are not
necessarily involved in obtaining the money,
but are targeted because of their innocent
appearance.
• According to the BBC article, “The money
laundered is likely to have come from drug
smuggling, people trafficking, and terrorism.”

5. Money mules are individuals used by criminals to
slip illegally obtained money past law enforcement
measures

6. What are Money Mules?
• Money mules simply make their bank
accounts accessible to criminals so that the
launderers are able to transfer funds in and
out of the accounts.
• As a reward for making their accounts
available, the criminals will typically let the
individual keep a percentage of the funds.

7. What are Money Mules?

8. What are Money Mules?
• Often, students may not even be aware of the
fact that they are taking part in illicit activity.
• Criminals can post fake job advertisements
such as “financial manager,” which gives the
unsuspecting student a sense of security and
authority.
• Once a few transactions have been made without
consequence, individuals may feel increasingly
committed to the position, and feel as though they
are beyond repercussion.

9. What are Money Mules?

10. What are Money Mules?

11. What are Money Mules?

12. Consequences of Acting as a Money
Mule
• After a period of success as a money mule, law
authorities may eventually catch on to the irregular
pattern of bank account transactions.
• Whether the money is being deposited in large quantities, or
consists of several micro transactions, anti-money
laundering systems utilize their algorithms to identify and
flag questionable activity related to laundering or other
types of fraud.
• According to the article, “If caught, money mules have their
bank accounts closed and could face jail.” Because the
money is filtered through the account of the mule, the
authorities may place the spotlight on them rather than the
actual criminals.

13. Consequences of Acting as a Money
Mule
• Between January and September of 2017, 18 to
24 year olds were involved in over 8,000 cases
regarding money mules in the United
Kingdom, according to Cifas, the UK’s fraud
prevention service.
• In the U.K., money laundering can be
punishable by up to 14 years in prison, which is
a major setback in the life of a young adult. In
order to avoid such consequences, there are
several steps students can take to ensure that they
do not fall victim to such schemes.

14. Consequences of Acting as a Money
Mule

15. How to Avoid Becoming a Money Mule
• While searching for potential job postings,
individuals must be wary of fake contact
information.
• If job listings seem like they are too good to
be true, it is a smart idea to do extra
background research and search for
references when applying.

16. How to Avoid Becoming a Money
Mule

17. How to Avoid Becoming a Money Mule
• The article also cites some tips to avoid being a
money mule, including keeping bank details away
from strangers, being wary of jobs that involve
strictly online transactions, and watching out for job
offers that contain typos or poor English.
• There are several legal ways that students can make
extra money, so it is advisable to stay away from any
promises of free or easy money to avoid legal
repercussion.
• By exercising vigilance and staying away from
dubious offers, students can stay away from troubles
with law enforcement and financial institutions.

18. How to Avoid Becoming a Money
Mule

19. Students: stop yourself becoming a
‘money mule’
• Fraudsters are recruiting unwitting students to
carry out criminal activity.
• New figures released this week by Financial Fraud
Action UK (FFA UK) have highlighted the spread
of a scam which recruits students, through illicit
job adverts, to money-launder thousands of pounds
to criminal gangs abroad – the proceeds of which
fund an international trade in drugs, people
trafficking and terrorism.

20. Students: stop yourself becoming a
‘money mule’

21. Students: stop yourself becoming a
‘money mule’
• The fake job offers, often made online using titles
such as ‘Money Transfer Agent’ or ‘Payment
Processing Agent’, turn the job applicants into so-
called ‘Money Mules’.

22. Students: stop yourself becoming a
‘money mule’
• According to the report, the recipient of the
offer is invited to receive money into their
bank account and transfer it to another
account, retaining a cut for themselves.
• In reality, the money received is stolen, often
the result of fraud on accounts, and is then
laundered to overseas bank accounts.

23. Students: stop yourself becoming a
‘money mule’

24. Students: stop yourself becoming a
‘money mule’
• Falling for these cons carries a number of
consequences for the student – including
freezing of student bank accounts, difficulty
in opening new accounts in the future –
affecting the ability to get a mortgage,
insurance etc, and even a prison sentence of
up to ten years.

25. Students: stop yourself becoming a
‘money mule’

26. Students: stop yourself becoming a
‘money mule’

27. Cuckoo Smurfing

28. What is cuckoo smurfing?
• How does alternative remittance (hawala) work?
• Alternative remittance (in a grossly simplified way)
works like this (using an example from times past): A
and B are people who want to move money in opposite
directions, say from one side of China to the other side.
• Person A wants to send a gift to his parents. Person B needs
to pay a supplier for goods he has purchased. They each
need to send the same amount, but in the opposite direction.
A and B do not know each other. A and B could each send a
man on horseback with gold coins. That is expensive and
risky. Enter the services of X and Y who are alternative
remitters in the respective cities. They know and trust each
other. They are part of an extensive network of remitters.

29. What is cuckoo smurfing?

30. Here’s some advice for students on how to spot a criminal
money laundering approach and steps to take to protect
themselves:
• Be very cautious of unsolicited emails promising
opportunities to make easy money.
• Verify any company that makes you a job offer and check
their contact details (address, landline phone number,
email address and website) are correct and whether they
are registered in the UK.
• Be especially wary of job offers from people or companies
overseas as it will be harder for you to find out if they
really are legitimate.
• Never give your bank account details to anyone unless you
know and trust them.

31. Here’s some advice for students on how to spot a criminal
money laundering approach and steps to take to protect
themselves:

32. Other signs that could indicate you are being
targeted by a money mule scam:
• Money mule adverts or offers can take a
variety of different forms and they may even
copy a genuine company’s website and have a
similar web address to make the scam seem
authentic.
• These adverts will normally state that they are an
overseas company seeking ‘UK representatives’
or ‘agents’ to act on their behalf for a period of
time, sometimes to avoid high transaction
charges or local taxes.

33. Other signs that could indicate you are being
targeted by a money mule scam:

34. Other signs that could indicate you are being
targeted by a money mule scam:
• The nature of the work that the company will
claim to be involved in can vary, but the
specifics of the job being advertised invariably
mean using your bank account to move money.
• The advert may be written in poor English
with grammatical and spelling mistakes.
• If you have already disclosed your bank account
details or received money into your account and
you think it could be a money mule scam, you
should contact your bank immediately.

35. Other signs that could indicate you are
being targeted by a money mule scam

36. Other signs that could indicate you are being
targeted by a money mule scam:
• New data reveals stark increase in young
people acting as ‘money mules’
• 75 per cent rise in the misuse of bank accounts
by 18 to 24 year olds in past year, with 8,652
cases between January and September 2017
• Acting as a money mule will result in a bank
account being closed, making it hard to obtain
student loans, mobile phone contracts or other
financial products

37. Other signs that could indicate you are being
targeted by a money mule scam:

38. Other signs that could indicate you are being
targeted by a money mule scam:
• The statistics reveal a 75 per cent increase in the
misuse of bank accounts involving 18 to 24 year
olds during the first nine months of 2017,
compared to the same period last year.
• This is where an account, policy or product is
misused by the genuine account holder.
• The most common example of this is when an
individual acts as a ‘money mule’, which means
they allow their bank account to be used to
facilitate the movement of criminal funds.

39. Other signs that could indicate you are
being targeted by a money mule scam

40. Other signs that could indicate you are being
targeted by a money mule scam:
• Young people and students are particularly vulnerable
as fraudsters know they are often short of cash.
Criminals may approach them with what looks like a
genuine job offer, asking them to receive money into
their bank account and transfer it onto someone else,
keeping some of the cash for themselves.
• According to the figures, there were 8,652 cases of ‘misuse
of facility’ cases amongst 18 to 24 year olds between
January and the end of September this year. This represents
35 per cent of all cases during that period.
• The 2017 figures also demonstrate a dramatic rise in
money mule fraud over the last five years, with cases
involving 18-24-year-olds more than doubling since
2013.

41. Other signs that could indicate you are being
targeted by a money mule scam:

42. Other signs that could indicate you are being
targeted by a money mule scam:
• Through ‘Don’t Be Fooled’, FFA UK and Cifas want to
highlight that, if you become a money mule, you are
involved in money laundering.
• Banks have sophisticated systems in place to track fraudulent
transactions and, when a person is caught misusing their
account in this way, it will be closed, and they will find it
difficult to open an account elsewhere.
• Having no bank account makes it hard to obtain student
loans, mobile phone contracts or other financial products.
A person convicted of money laundering could even face
up to 14 years in prison.

43. Other signs that could indicate you are
being targeted by a money mule scam:

44. Other signs that could indicate you are being
targeted by a money mule scam:
• The organised criminal gangs behind money
mule scams often use the proceeds of crime
to commit other serious offences such as
drug and people trafficking, sexual
exploitation and terrorism.

45. Other signs that could indicate you are
being targeted by a money mule scam:

46. Other signs that could indicate you are being
targeted by a money mule scam:
• “Money muling is money laundering and criminals
are using young people as mules in increasing
numbers. We know that students are particularly
vulnerable as they are often short of cash. That’s
why we have launched the Don’t Be Fooled
campaign.
• “When you’re caught, your bank account will be
closed, making it difficult to access cash and credit.
You could even face up to 14 years in jail.
• We’re urging people not to give their bank account
details to anyone unless they know and trust them.
If an offer of easy money sounds too good to be true,
it probably is.”

47. Other signs that could indicate you are
being targeted by a money mule scam:

48. Other signs that could indicate you are
being targeted by a money mule scam:

49. Other signs that could indicate you are being
targeted by a money mule scam:
• “Our new figures show that money muling
amongst young people is on the rise. This is a
serious issue that not only has consequences for
the money mule, but for society as a whole.
• “The criminals behind money mules often use the
cash to fund major crime, like terrorism and
people trafficking.
• We want to educate young people about how
serious this fraud is in the hope that they will
think twice before getting involved.”

50. Other signs that could indicate you are
being targeted by a money mule scam

51. Case Study
• Here’s how organised crime gangs are tricking students
into handling dirty money
• It’s called money muling and it can lead to 14 years
imprisonment.
• Money muling is also known as money laundering – it’s the
act of allowing someone to use your account to deposit then
move on dirty money. It’s typically sold as a way of making
easy money, with the incentive of keeping some of the cash as
payment.
• Two students from the University of Hertfordshire, Alice
and Jade, on how easy it is to get caught up in the murky
underbelly of financial fraud and how it’s ruining the
financial futures of students across the country.

52. Fake job experiment exposes a third of Brits who
admit they would apply for a job as a Money Mule

53. Case Study
• Students are lured into becoming a money
mule through platforms like Facebook,
Instagram and Whatsapp.
• Alice said: “Posts reading ‘You can make £5k
in less than 30 minutes, no card required, just
DM me’ are everywhere. People will send out
broadcasts on group chats or via university
Facebook pages”.

54. Case Study
• When it comes to money muling, ignorance
isn’t classed as an excuse for your involvement.
• Alice told us: “A girl I know had her account
closed as she’d allowed her friend to transfer
dirty money using her card, unaware of the
situation. She’s been trying for the past six
years to get an account again.”
• Students involved in money muling can also face
imprisonment. Even being loosely involved in a
money muling operation can lead to 14 years
behind bars.

55. Case Study

56. Case Study
• Jade, a friend of Alice’s, was involved in a case
of financial fraud on a wider scale.
• During her first year, she was approached by a
mutual friend at uni, offering her a way to get half
price rent on her first-year student
accommodation monthly instalments. She told us:
“This guy in our year simply told me where to
send the money and that he’d sort out the rest.
• “When I asked how I’d know if it was
legitimate, he told me I’d receive a
confirmation email from the university.”

57. Case Study

58. Case Study
• After a year of silence, it came to light that the
group behind the operation had been receiving
the clean money from students and then paying
off the debts to the university using someone
else’s credit card in America.
• “They targeted a number of university year
groups and the final amount they’d taken was
around £250k. The case is still ongoing due to
the amount that was stolen. While I’m
innocent, I don’t know what will happen.”

59. Case Study

60. Case Study
• When asked what can be done to prevent students being
caught up in the world of financial fraud, Alice said:
“Students need to be educated on the repercussions of it.
Just by having an awareness, you can avoid being
indirectly involved in something that could ruin you
financially for years.”
• According to Alice, these crimes bite back when you least
expect it. She said: “Fraud is a slow bullet. Even if it’s not
today, tomorrow or next year, it’ll eventually hit
somebody”.
• Criminals need money mules to launder the profits of
their crimes. Mules will usually be unaware of where the
money comes from – fraud, scams and other serious
crime – or where it goes.

61. Case Study

62. DON’T BE FOOLED
A campaign to deter students from
becoming money mules
• Don’t Be Fooled aims to deter students from
becoming money mules, by educating them
about what the term means, how criminals
operate and why they are a target. The
campaign also intends to communicate the
serious consequences of participating in
such schemes.

63. DON’T BE FOOLED
A campaign to deter students from
becoming money mules

64. References
Cash-strapped students duped into money laundering
• https://www.thetimes.co.uk/static/connected-families/how-organised-crime-is-turning-
young-people-into-money-mules/
Cifas
• https://www.cifas.org.uk/
What is a money mule and how do they get caught?
• https://kyc360.com/article/money-mule-get-caught/
Lesson three: Money Mules
• https://www.cifas.org.uk/secure/contentPORT/uploads/documents/Education%20document
s/Key%20stage%204%20-%20Lesson%20Plan%2003.pdf
Money Mule Scams
• https://www.financialfraudaction.org.uk/consumer/advice/money-mule-scams/
Money Mule Scams Double For Students, Graduates & Other Young People
• http://www.e4s.co.uk/news/articles/view/2198/job-news-and-information/graduate/Money-Mule-Scams-
Double-For-Students-Graduates--Other-Young-People
Soaring numbers of young people used as 'money mules' by criminals
• https://www.independent.co.uk/news/uk/home-news/young-people-students-warned-dangers-money-
mules-criminal-gangs-money-laundering-a8077351.html

65. Don’t Be A Money Mule