With an increase in jobs offering ‘easy money’ online to young earners, some students are falling victim to financial fraud.

Some €44.1 million has been laundered through money mule accounts in the three years up to 2024, according to figures released by FraudSMART. There are some startling statistics in their survey.

Nearly half (45%) of 18-24 year-olds reported that they, or someone they know, has been approached to use their bank account to transfer money. One in three (34%) 18-24 year-olds admitted they would consider using their bank account to lodge or transfer money on behalf of someone else, in exchange for keeping some of the money.

The survey also found that awareness of the consequences of money muling is lower amongst this age group compared to older age groups. Some 25% are unaware that it could help fund criminal activity, 38% do not realise they could face jail time, and 57% are unaware it could affect their ability to obtain international travel or work visas.

Easy money

According to Niamh Davenport, head of financial crime, Banking and Payments Federation Ireland, criminals are targeting teenagers and young adults through social media adverts and messages to recruit them as money mules in exchange for money or gifts.

“It is worrying that, according to our research, almost half of those 18-24 reported that they, or someone they know, have been approached to use their account for money transfers,” says Niamh.

So what exactly is money mule? A money mule is a person who receives money from a third party in their bank account and transfers it to another one or takes it out in cash and gives it to someone else, obtaining a commission for it.

People may not realise that money muling has serious consequences and may result in a criminal record.

“It’s crucial that young people understand that this is not a ‘victimless’ crime and the consequences are severe for those who get involved. Laundered money is often used by criminals to fund serious criminal activities such as terrorism, drug trafficking and human trafficking. This is why the penalties for money muling are so serious,” she explains.

Avoid falling victim

Advice to avoid falling victim to this particular type of fraud include:

Exercise caution around unsolicited emails or approaches promising opportunities to make easy money, particularly on social media.

Research any work-from-home opportunities to ensure the business is legitimate.

Be particularly cautious of offers from overseas seeking ‘local/national representatives’ or ‘agents’ to act on their behalf as it is difficult to verify their legitimacy.

Never allow your bank account to be used by someone else.

Never agree to open a new bank account in your own name to receive payments on behalf of a ‘friend’ or criminal.