Students being targeted as potential money mules, expert warns

Students and parents should be on alert ahead of the new academic year, with young people prime targets for the emerging bank account “mule” scam.

A money mule is someone who receives and moves money through their bank account. What at first glance seems an innocent way to earn additional money is actually part of the criminal ecosystem of laundering money.

These scams are often disguised as legitimate job ads on social media, promising high daily earnings. The scammer often impersonates a vulnerable person seeking help to receive an international payment.

The lure of easy money and the need for a side hustle can put students at risk, as the demand for money mules rises. Criminals are increasingly targeting students, which might potentially leave them with a criminal record. Money muling is illegal and punishable, even if you’re not aware that you’re committing a crime.

A survey by Cifas, a fraud prevention service in the UK, revealed that money muling was considered the least likely to be illegal among various fraud activities.

Calvin Gan, Senior Manager of Scam Protection at cybersecurity provider F-Secure, warns students and parents to stay vigilant and educate themselves on the scam. To highlight the threat of money muling, in 2022, INTERPOL launched the #YourAccountYourCrime campaign to raise awareness of money muling and related dangers.

“Side hustle culture allows students to earn money online in more ways than ever,” says Gan.

“Unfortunately, this, combined with the appeal of quick-earning schemes and students not fully understanding the implication of the law, makes them a prime target to be bank account mules.”

Stay safe

To protect yourself from illicit activities and legal repercussions, always stay alert. “Bank account mules have been a problem for a while, but we’re seeing different demographics, like students, being targeted by different ways. Generative AI has given scammers a new edge as they can generate increasingly convincing job ads or conversations in perfect English in seconds, even if it’s not their first language,” Gan continued.

He reminds people to keep bank account credentials private from others. A legitimate employer will never ask for online banking access details, whether for payment or any other reason.

Parents should have open conversations with their children about how they earn money, especially online, and stress the importance of keeping bank account details private. If possible, monitor your child’s account for any suspicious transactions, particularly if there are multiple incoming and outgoing transfers, and discuss these with them.

Treat any job offers advertised on social media with caution, and do thorough research before engaging. Check if the company has a dedicated website, a Glassdoor profile with reviews, and employees on LinkedIn with active profiles. Applying for jobs through well-known job posting sites rather than social media is always safer.

When earning money online, especially larger sums, always verify that the sender’s online banking details match the buyer's. If you can’t verify the details or something feels off, report the transaction to your bank, the police, or local authorities.

Remember, if an online job offer sounds too good to be true, it probably is. If you’re pressured to receive money, even from someone you know, stop and talk it over with someone you trust.