• More than 870 recruitment adverts for money mules detected in first half of 2008
• Consumers urged to avoid being duped into helping fraudsters
• Online guide launched offering help and advice

APACS, the UK payments association, has today (25 September 2008) revealed the increasing number of ‘money mule’ recruitment adverts detected in the UK and reminded consumers of some simple rules to avoid being duped into helping criminals transfer money out of the country. Recruitment adverts for money mules are becoming more common with the latest APACS data showing 873 detected fake ‘job’ adverts in the first half of 2008, up 345 per cent over the last three years, and 33 per cent on last year.

A "money mule", or "money transfer agent" as it is sometimes called, is someone recruited by fraudsters needing to transfer money from one country to another. As most fraudsters are located overseas and it is not possible to make cross-border transfers from most online bank accounts in the UK, a money mule is required to launder the money. After being recruited by the fraudsters, money mules receive funds into their accounts and they then withdraw the money and send it overseas using a wire transfer service, minus a certain commission payment.

Number of mule recruitment adverts* by month Q1 2005 – Q2 2008-08-20

	Q1	Q2	Q3	Q4	Total
2005	78	118	107	169	472
2006	202	266	290	329	1,087
2007	349	306	413	394	1,462
2008	503	370	-	-	-

* These are calculated according to each time a new fake ‘job’ advert is detected. Such scams may appear as spam emails, spoof websites, adverts on real job recruitment websites or even in national newspapers.

To help consumers avoid getting caught up in scams of this nature, APACS has launched an advice guide explaining how criminals go about recruiting people to transfer fraudulent funds abroad and the consequences of getting involved in this type of scam. The guide is available to download from www.apacs.org.uk and www.banksafeonline.org.uk

Sandra Quinn, director of communications at APACS, says:

"Criminals clearly aren’t giving up and are turning to new and more sophisticated methods of transferring fraudulent funds out of this country.

"We urge consumers to be cautious about any unsolicited offers or opportunities offering the chance to make some easy money. By allowing your bank account to be used to receive and transfer funds, you will be acting illegally, even if you have had nothing to do with the actual theft of funds from another person’s account. If you see an opportunity to make some easy money and the offer seems too good to be true, then it probably is!

"Anyone who has disclosed their bank account details or received funds into their account for what they think could be a money mule scam should contact their bank immediately.”

APACS advice to consumer to help minimise their chances of being a victim is:

• Be cautious about any unsolicited offers or opportunities offering you the chance to make some easy money.
• Be especially wary of offers from people or companies overseas as it is harder for you to find out if they really are who they say they are.
• Take steps to verify any company which makes you a job offer and check their contact details (address, phone number, email address and web site) are correct and whether they are registered in the UK.
• Never give your bank details to anyone unless you know and trust them.
  

Further help and advice about preventing online banking fraud is available at www.banksafeonline.org.uk.

ENDS

Notes to editors:

1 Case study

David is a student at a British university**. Like many students he is often short of cash and on the lookout for ways to earn some extra money. Also, like most students, he spends a lot of time on the internet and has come across what looks like the answer to his problems in an email that appeared in his inbox. The email appears to be from an overseas company that wants to expand into the UK and is looking for employees to work from home.

All the company needs David to do is to provide his bank account details, so that they can put money into it from their customers. Then all David has to do is take the money out and send it overseas using a wire transfer service. In return David gets to keep a percentage of all the money that goes through his account.

David thinks this sounds like a lot of money to be paid for not much effort, so he decides he'd better make sure that the company is above board. Luckily the email contains a link to the company's website. David goes to the site, which looks very slick and professional, so he decides to take them up on their offer. As requested, David gives the company all his personal details, including copies of his driving licence and passport, as well as his banking details. They even send him an employment contract to sign. Quickly, the money starts arriving into his account along with instructions to take it out of his account as fast as possible - as cash - and to send it on to a third party via a wire transfer agency office.

A few days later David’s bank gives him a call. It transpires that the money coming into his account was all stolen, and the bank wants it back. David explains that he has sent it all to eastern Europe, to a representative of the company he is working for, and offers to put the bank in touch with the company he is working for.

However, the company doesn't reply to his emails any more, and the phone number and website seem to have stopped working. David realises he has absolutely no idea how to get in contact with who he was dealing with.

This is because the company never really existed and was just used as a front by the fraudsters, who recruited David in order to turn him into a ‘money mule’. As a consequence the bank has closed David’s account and is taking whatever money is left in it to repay the victims whose fraudulently-obtained money David was laundering. Furthermore the police have informed David that he may be charged with being an international money launderer and advised him that all the personal information he gave to the fraudsters might be sold on to identity thieves who could use it to impersonate him to commit other crimes in future.

This is not exactly the dream job he had in mind.

For more information on money mules and how to avoid becoming one, see Bank Safe Online, the advice website set up by the UK banking industry to provide advice on safe internet banking:

http://www.banksafeonline.org.uk/moneymule_explained.html

2 APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues.

We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

** This case study is based on a real-life example. However, David is a fictional character and not available for interview.