MONEY MULES TRAPPED IN THE TRANSFER

Fraudulent bank activity on the rise

In the final article in a special four-part series, reporter Gemma Good spoke to representatives in the financial services industry, the heads of the local credit union and AIB bank, about the increasing number of digital frauds such as money mules allowing their accounts be used to launder money...

The CEO of Cavan Credit Union has described money muling as a “significant threat” to the financial system and economy.

According to AIB and Cavan Credit Union, fraudulent activity is increasing among accounts. With new means constantly emerging, they urge customers to be vigilant and report any suspicious activity.

“We have had instances of money laundering, which has led to prosecutions by An Garda Síochána,” shared Eimear Tobin, the CEO of Cavan Credit Union.

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The local credit union has a legal obligation to report any knowledge or suspicions of activity in terms of money laundering and it also has a dedicated anti-money laundering compliance officer who reports any suspicious activity to the financial investigations unit within An Garda Síochána.

“Fraudulent activity would be a common occurrence among our account holders. I would say it has increased,” Ms Tobin said.

Cavan Credit Union services 1,700 current accounts and find that money muling is “more prevalent” in current account holders where a debit card is attached.

A money mule is a person who transfers illegally obtained money between different accounts, very often in different countries, on behalf of others. They are often approached by mule herders, who will recruit people and encourage them to get involved, often with the promises of cash or a reward which often does not materialise. The money mule passes over their account details, allowing criminals full access, when transactions will begin to take place.

If member accounts are subject to fraudulent activity, Cavan Credit Union “endeavour to compensate the member where possible”.

“We have a dedicated member on hand, who would deal with our third party provider who would investigate each case on a case by case basis and refund the member where possible.”

Awareness

However, to avoid getting involved in such activity in the first place, they host dedicated workshops in partnership with An Garda Síochána to third level students every year to spread awareness on money muling and fraudulent activity online.

“We target transition year students up to sixth year students educating them on money muling and the risks involved with getting involved with money mules.”

Cavan Credit Union hopes to host their next such event in November this year.

Investing in systems

Meanwhile, Mary McHale, who is the Head of the Financial Crime Prevention Unit at AIB, also spoke to the Celt on money muling and fraudulent activity.

There are currently 3.35 million customers within AIB and there have been “a number of accounts” used for money muling purposes.

“We have invested quite significantly in fraud monitoring systems and we are continuously updating those as new fraud types emerge.

“We would be monitoring accounts for unusual patterns of behaviour and, once we spot something like that, that’s when we would reach out and proactively engage with customers,” Ms McHale stated.

However, she advised customers to regularly check their own accounts and, if they see anything that they determine to be suspicious or a transaction that they’re not familiar with, to get in contact with them straightaway.

“The sooner they contact us we will then be able to safeguard their account.

“If they have moved money there’s a better chance of us being able to recover it once they get in touch with us straight away.

“We will then on a best endeavours basis contact the bank who has received those funds and try and get that money back for you.”

Ms McHale said “a fair amount” of different types of fraud take place on people’s account and this type of activity is “rising”.

Text message fraud

“We have a lot of text message fraud,” she shared, adding that “quite recently” a lot of safe account fraud has been occurring, where customers are being contacted and asked to move their money into so-called safe accounts, which is actually a fraudster’s account.

“We have investment fraud, we have purchase fraud.

“There are different types of fraud and yes, it’s on the rise.”

Ms McHale advised that AIB reps will “never ask you to disclose your information around code cards, pin numbers or anything like that over the phone”.

“We never ask you to move your money into a safe account,” she added.

She also gave her advice on how people can avoid becoming a money mule.

“First off, if you get an unsolicited email or a contact through social media with an opportunity to make some quick money, avoid at all costs!”

For those who are working from home she urged that people “make sure” that the business is legitimate and “one that you can trust.”

“Thirdly, I’d say never give your account details to anyone unless you fully trust and know them.

“Never allow your own accounts to be used for the movement of money by somebody purporting either to be your friend, or somebody, who’s going to pay you for that, and never open an account in your own name for someone else.”

Consequences

Ms McHale also appealed to parents to “have that conversation” with children on the consequences of getting involved in money muling. Those found guilty of money muling are convicted under Section 7 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. They face a potential prison sentence of up to 14 years, while they also incur a criminal conviction which will remain on their record.

“It’s really important that parents understand the implications of money muling and have that conversation with their children in terms of, what the implications are going to be for you if you are found guilty of a money laundering offence, which is what money muling is.”

If you fear our account has been compromised, contact your financial institution immediately.