Money Mules - Trapped in the Transfer

Herding the young and vulnerable

In the first of a four-part series, reporter GEMMA GOOD, looks at the rise of money mules to steal or launder money, how young people are being targeted for this purpose, what it involves and the consequences if left with a conviction for a fraud offence...

Over €44M is estimated to have been laundered through such money mule accounts in Ireland in the three years to the end of June, 2024, according to figures from FraudSMART.

The most recent statistics show that 44% of money mules are aged between 18-24 meaning that college-aged students, under financial pressure, are prime targets for unscrupulous individuals looking to take advantage.

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Sergeant for the Cavan Community Unit Cathal Buggy spoke with the Celt to raise awareness on the crime. In An Garda Síochána for 23 years, he highlighted the “huge” implications for those convicted of money muling, which is a criminal offence.

“A money mule is a person who allows or facilitates their account to be used for the transfer of illegally obtained funds into that account,” he explained.

“The money will stay there momentarily, where it will then be moved on in the direction of other accounts.”

Mule herding

Sgt Buggy said there are “a number of different methods” used to recruit money mules with the “most significant” known as mule herding.

“That is the person who will enlist family and friends, college mates,” he said, adding how the opportunity is sold as “100% legitimate” with the promise of “easy, fast cash”.

“They’ll tell them about the other people they know and the stories of how easy it has been for those people.”

After the sales pitch, the mule herder will obtain bank details. “From there the money will be lodged to their accounts.”

A method known as romance fraud is also sometimes used, whereby an individual “builds up a relationship” with somebody else online and “deceives them” into handing over their bank account details when the transactions begin to take place.

Sgt Buggy also gave the example of “fraudulent job offers” whereby people are presented with an opportunity to “work from home” online, often advertised as being a “rep for a local company abroad”.

“Generally, if this job sounds too good to be true, it probably is and it could be a form of money muling in the long term.”

The money that then runs through the money mule accounts is illegally obtained via “fraudulent activity”, which mostly takes place online.

Cybercrime

“It’s fraudulent activity online. It’s cybercrime; phishing and smishing,” he said, explaining that criminals “pose online” as a bank or a financial institution or a service provider.

The messages and emails that all of us have received at one stage inviting us to click on a link, these are the funds that are being funnelled through money mule accounts.

“This is the money that runs through the money mule account.

“That’s how they will access your smart device and then your accounts,” Sgt Buggy warned.

“It’s from there that they will be able to access your money.”

How to protect you accounts from scammers

Sgt Buggy described how people can protect themselves from money muling by “not giving their bank details to anybody” and also “keeping their online access codes, their CVV number and their cards secure”.

He also urged people to not click on the link contained within unsolicited emails or text messages.

An Garda Síochána talk to fourth, fifth- and sixth-year students and those entering college to raise awareness on the crime, however anybody can be approached to become a money mule which is evident in the Cavan courts.

For the past two years, the Gardaí locally have been running education programmes in schools across the county in conjunction with Cavan Credit Union.

“I believe the education piece we’ve been running for the last two years is definitely, getting across to the pupils,” he said, whereby they are seeing “more and more” reports of online scams being reported at Cavan Garda Station.

“I think it’s important to continue to do that to increase the awareness.

“Even in terms of unsolicited emails and clicking on links, those reports are coming in more and more where people have an awareness that that there’s something not right.”

In 2024, there were 2,116 reports of phishing, vishing or smishing frauds made directly by the public to An Garda Síochana. Meanwhile there 573 reports were made in the first quarter of this year, meaning if the trend is to continue to the end of the year, it would result in a rise of over eight per cent.

‘Huge consequences’

Meanwhile, the consequences for becoming a money mule upon conviction are “huge” according to the Cavan Sergeant. The conviction comes under section seven of the Money Laundering and Terrorist Financing Act 2010.

“It carries a penalty of up to 14 years in prison but, in addition to that, if you are convicted of a money laundering offence like section seven, you will have problems down the road in terms of finance applications for a mortgage, or if you’re looking maybe for employment in the finance sector.

“It can obviously cause problems there.”

Sgt Buggy also said that “any criminal conviction” can have “huge implications” for those who are looking for a visa to work or travel abroad.

In his experience “people are never successful” when it comes to money muling.

“The offers that are provided to the person and the promises do not materialise, but unfortunately the person still is left with the consequences of being involved in the act,” he concluded.

Report it

Any reports in relation to money muling or online fraud can be made in confidence to An Garda Sícohána using the Garda Confidential Line at 1800-666-111, or by reporting it at Cavan Garda Station.

** This article has been produced with the support of the Court Reporting Scheme (ancillary measure)**