Money Mules- Trapped in the Transfer

Cavan Gardaí ramp up response to online fraud

In the third article in a special series, reporter Gemma Good spoke to Superintendent John Callanan at Cavan Garda Station about a new Economic Fraud Unit that was set up in the county earlier this year in response to an increasing number of online scams and frauds such as money muling...

A new Economic Fraud Unit was set up in County Cavan in May of this year to investigate reports of online fraud.

The unit has been established in the Cavan Community Engagement area with the assistance of detective members of the Cavan Monaghan Crime Area.

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Superintendent at Cavan Garda Station John Callanan said the creation of the unit is “indicative” of the level of their concern and the number of incidences that are presenting in relation to online fraud.

“We have set up a dedicated unit to deal with reports of fraud, electronic fraud,” Supt Callanan told the Celt, describing how this includes phishing, scam calls, money laundering, money muling and all other associated crimes.

“All reports that are made within the county of Cavan are sent into that unit for consideration. At that point that unit may investigate those using the specialised experience and specialised tools that they have.

“We are also fortunate that we can utilise those members to assist other members, uniformed members in the county of Cavan to take on investigations of that nature themselves.”

The senior policeman pointed out that such investigations can be “quite complex” however stated that it is something that An Garda Síochána want to “grow” their capacity to investigate.

“We have a lot of experience in this area but things are ever evolving. There’s new trends, new providers, new resources for investigators that we have to get on top of so that unit will be at the forefront of our response to economic fraud in the county.”

Online fraud

Speaking on the current trends, he said they are “mirrored” within and outside the country.

“The current trends of particular to us are the phenomenon of money muling,” he said, describing it as a “huge problem” however a “relatively simple exercise” for those who get involved.

“A person is providing their bank details to a third party to facilitate what will very often in almost all cases be an illegal transaction,” he said. “We see an awful lot of that and we see an awful lot of young people pulled into that world; young people that have never been involved in crime nor never will be again.

“We would also see an awful lot of what would generally be known as online fraud,” he said, giving the example of scam text messages whereby somebody presents themselves as your financial provider looking for your bank details, or also where somebody poses to be a business supplier who “wishes to update” their records in relation to payment details.

“Despite the level of awareness that’s out there and the level of messaging that’s out there people are still getting drawn into these issues and they’re providing details and unfortunately, they’re becoming the victims of crime as a result.”

Money laundering

In the serious crime sphere, Supt Callanan said they are seeing “a large amount of money laundering”.

“We are doing an awful lot of work around dealing with the proceeds of crime and cutting off that supply to those illegal or criminal groupings,” he explained, adding how these crimes are not orchestrated by a single person.

He regards them as “organised criminal groupings” that operate “without respect” for borders and jurisdictions, which can be mounted from “any spot on the globe”.

“These are industrial organisations, industrial criminal groupings that operate on a huge scale. They employ the latest technology.

“They’re constantly evolving and we as criminal investigators have to adapt and pivot to these various things.”

Criminal networks

He also shared that when An Garda Síochána infiltrate those international criminal networks, money and online fraud are only “one aspect” of it.

“But you will often find and nearly always find that you will have human trafficking, you will have drugs, you will have illicit property sales.

“These organised criminal groups are not limiting themselves to just online fraud.

“They’re involved across the whole sphere and unfortunately on each of their criminal enterprises, there are victims at the end of it and often in the most traumatic circumstances.”

In relation to money muling, he said it may just be a case of passing your details at a party to someone perhaps “a friend, maybe a loved one, a family member” however, those who get involved are “facilitating criminal organisations that are wreaking havoc, across victims across the world.”

“No matter how small their involvement, it’s facilitating these criminal enterprises at the highest levels,” warned Supt Callanan.

Report it

“I would encourage anyone, if they are approached to engage in this sort of activity to make that report in confidence to An Garda Síochána and help us in our work, to eradicate it,” he urged.

Working within An Garda Síochána for 16 years, Supt Callanan told the Celt that those convicted of money muling may not face a prison sentence but can “often” be handed out suspended sentences.

“The important thing to remember is that means that they are incurring a criminal conviction, which will remain on their record.

“That conviction will travel with them if they go to go abroad to go to America, if they go to Australia and they’re seeking entry to that country that record is disclosable to those authorities, and it may very well, unfortunately prevent them from entering that country.”

Closer to home, he said those applying for a job will have to account for their criminal record to their prospective employer.

“Unfortunately, the reality is that might prevent them from taking a job that they otherwise may have been offered.”

Asked if he believes people realise they are committing an offence when they agree to get involved in money muling, Supt Callanan responded that there could be “an element of confusion”.

“We are trying to increase that awareness that people are committing an offence if they facilitate these online frauds or these scams.

“I think the other point, we have been singing this song delivering this message for many years now in relation to it and I think the awareness is out there with people. What they do with that awareness is the important part.”

‘Greed’

Supt Callanan believes there is “an element of greed” at play when people agree to get involved with money muling.

“There is an element of greed in any of these offences.

“It’s an opportunist offence in a lot of instances.

“As an example, if someone was to provide their bank details over social media to a person they never met before, they are being offered a quick buck and I can see how that would be attractive,” he stated, citing the “challenging” economic situation and the cost of living.

“Being offered money for essentially doing very little is obviously appealing. There’s an old saying, if it seems too good to be true, it is too good to be true.”

If people do suspect their account has been used to illegally launder money, Supt Callanan urged people to “do what you would always do” and make a report to your financial institution. The second call should then be to An Garda Síochána.

“I know there might be an element of apprehension, or maybe even fear that by reporting something, you could become complicit or be viewed as being complicit in it.

“The reality is, if you see a transaction on your account that you know nothing about, you know nothing about it and it’s something that you need to report.”

He said people “shouldn’t be any way nervous” about making a report to the gardaí.

Supt Callanan warned that the “spur of the moment decision” will have “lifelong implications for people” and appealed to people to not get involved.

“We strongly encourage people and we appeal to them to be very conscious if they’re made an offer in relation to providing their bank details, taking out money for someone or some sort of variant of that to be very careful and think, think about what they’re doing.”