Don’t be as stubborn as a money mule

Who’s the biggest culprit? The scammers who trick gullible young people into channelling money through their bank accounts? Or the naive young dupes eager to make some easy cash?

Fact is that money mules are a steadily growing social problem among young people. This is partly because scammers and criminals know exactly how to manipulate them and abuse their trust, but apparently also because young people often don't see much harm in money muling.

What are money mules?

A money mule is someone who - either knowingly or unknowingly - allows their bank account to be used by someone else. Criminals use this method to launder money they obtained illegally through phishing, online scams and hacks, for instance. Directly depositing stolen money into their own accounts would be too risky, so instead, they move it through the accounts of money mules, who take it out in cash or transfer it to other accounts.

In most cases, young people are tempted – or even pressured – into handing over their debit cards and banking app login details in exchange for a financial reward. It might seem like a harmless way to earn some quick money, and it may be music to many people's ears, but if something sounds too good to be true, it usually is. And before long, that easy money can come with some serious legal and financial consequences for those young people.

Not just young people

Fraudsters often select their prey in a targeted way. For instance, they meticulously seek out vulnerable individuals who have no immediate support network or who could use some extra cash, such as singles or people without a steady income. And the money mule phenomenon is not at all limited to young people alone. The promise of easy money can lure victims of any age.

Awareness is the first step to protection

In our digital world where electronic communication and online money transfers have become the norm, crime is on the rise in those areas and parents and children need to protect themselves accordingly. Parents can play a crucial role in preventing their child from becoming a money mule. Actively discussing this topic with children is a good start,

because many young people are not fully aware of the consequences of any willing or coerced 'cooperation' with scammers. Whether they are approached through social media, on the street or even at school, many seem to be blinded by the opportunity to make some easy money. According to a Febelfin study, 11% of young people aged 16 to 30 would consider letting someone else use their bank details for money. This deeply worrying statistic means we need to raise people's awareness of the consequences.

So what are the consequences for money mules?

Young people may not be aware of them, but collaborating in scams does have consequences.

• Legal: young people may be prosecuted for being complicit in money laundering or fraud, resulting in a criminal record
• Financial: the victims have to be compensated, possibly via the young person's account.
• Practical: once flagged as a fraudster with banks, the young person may see their bank account closed and lose access to other banking services such as loans.

How can parents help?

• Show an interest and start a conversation Talk to your children about their lives online regularly. Try to build a relationship of trust with an open mind. Only then will young people be more likely to share their problems with you.
• Talk about the risks of easy money Explain what money mules are and why they should never share their bank details, bank cards, PINs, etc. with anyone, not even someone they 'know'.
• Monitor their social media Keep an eye on their followers and try to find out who they communicate with. Warn them about followers they don't know, suspicious messages and 'once-in-a-lifetime' opportunities. If something sounds too good to be true, it usually is.
• Report suspicious activity If you suspect your child is being approached or has been approached by scammers, contact the police.