Here’s how organised crime gangs are tricking students into handling dirty money
It’s called money muling and it can lead to 14 years imprisonment
Money muling is also known as money laundering – it’s the act of allowing someone to use your account to deposit then move on dirty money. It’s typically sold as a way of making easy money, with the incentive of keeping some of the cash as payment.
We spoke to two students from the University of Hertfordshire, Alice and Jade*, on how easy it is to get caught up in the murky underbelly of financial fraud and how it’s ruining the financial futures of students across the country.
Money muling is as easy to get into as letting your friend use your bank account to transfer money
Click here to find out how to protect yourself from getting caught up in fraud
Students are lured into becoming a money mule through platforms like Facebook, Instagram and Whatsapp. Alice said: “Posts reading ‘You can make £5k in less than 30 minutes, no card required, just DM me’ are everywhere. People will send out broadcasts on group chats or via university Facebook pages”.
When it comes to money muling, ignorance isn’t classed as an excuse for your involvement. Alice told us: “A girl I know had her account closed as she’d allowed her friend to transfer dirty money using her card, unaware of the situation. She’s been trying for the past six years to get an account again.”
Students involved in money muling can also face imprisonment. Even being loosely involved in a money muling operation can lead to 14 years behind bars.
Jade*, a friend of Alice’s, was involved in a case of financial fraud on a wider scale. During her first year, she was approached by a mutual friend at uni, offering her a way to get half price rent on her first-year student accommodation monthly instalments. She told us: “This guy in our year simply told me where to send the money and that he’d sort out the rest.
“When I asked how I’d know if it was legitimate, he told me I’d receive a confirmation email from the university.”
After a year of silence, it came to light that the group behind the operation had been receiving the clean money from students and then paying off the debts to the university using someone else’s credit card in America.
“They targeted a number of university year groups and the final amount they’d taken was around £250k. The case is still ongoing due to the amount that was stolen. While I’m innocent, I don’t know what will happen.”
Money laundering is a complicated crime and if you’re involved you can risk imprisonment
Find out more about the risks here and how to protect yourself against unknowingly being involved
When asked what can be done to prevent students being caught up in the world of financial fraud, Alice said: “Students need to be educated on the repercussions of it. Just by having an awareness, you can avoid being indirectly involved in something that could ruin you financially for years.”
According to Alice, these crimes bite back when you least expect it. She said: “Fraud is a slow bullet. Even if it’s not today, tomorrow or next year, it’ll eventually hit somebody”.
Criminals need money mules to launder the profits of their crimes. Mules will usually be unaware of where the money comes from – fraud, scams and other serious crime – or where it goes.
Watch this film from Cifas, the UK’s fraud prevention agency, to see the devastating crimes you enable by acting as a money mule.
Being involved in money muling, ignorant of it or not, is a criminal offence
Find out more about how to protect yourself against fraud here
*Names have been changed, and quotes have been condensed and edited for clarity.