Stop cashing in your bank account for strangers, AFP and banks say

Renting or selling bank accounts to third parties must stop, the Australian Federal Police (AFP) says.

Police and Australian Banking Association also say they are cracking down on the illegal practice.

According to the AFP, Australian money mules will rent out their bank accounts to criminals for as little as $200.

AFP Detective Superintendent Marie Andersson says money laundering is part of organised crime and allows criminals to bankroll future crimes.

“It is illegal to rent, buy or sell bank accounts, and doing so supports the criminal ecosystem,” she says.

“Your account may be housing money derived from scams, extortion, drug trafficking and terrorism.

“If a criminal has access to your bank accounts and personal details, they may use this information to commit other crimes, potentially implicating you in their illegal activities.”

Australian Banking Association CEO Anna Bligh says ‘mule’ accounts are a key part of a scammer’s business model which banks are identifying, investigating and shutting down.

“Using mule accounts to hide and move stolen money around is a key tactic in a criminal’s playbook,” she says.

“Renting or selling your bank account may seem harmless but you may be unwittingly helping a scammer to rip-off a family member or someone else you know.

“Don’t let criminals cash in on your bank account,” Bligh says.

“Steer clear if you’ve seen an advertisement or are approached to rent or sell your bank account. There’s a good chance you’re being recruited to hide the profits of criminal activity.”

WHO ARE MONEY MULES

• Money mules are individuals who, knowingly or unknowingly, are recruited by criminal syndicates to transfer money in and out of their personal accounts to make the funds appear legitimate.
• They may also rent or sell their account for a payment.
• Routing money this way makes it difficult to track ‘dirty’ cash.
• Mules are paid $200-$500 for the use of their accounts and may receive a commission. Source: AFP

Criminals target potential money mules through social media, messaging or gaming platforms, chat forums, online advertisements or even in face-to-face meetings, the AFP says.

Individuals may be recruited through:

• Employment scams – offering what seems like quick and easy money for little work and asking for an Australian bank account to transfer funds and are promised a commission for their work.
• Threat scams – scammers contact victims threatening criminal charges and arrest unless they transfer and receive funds.
• Romance scams – scammers build a relationship online then ask the victim to transfer money to other accounts, typically overseas, using their personal account.

Criminal networks are also increasingly asking money mules to move funds through cryptocurrency exchanges/ATMs (CATM) and global money transfers apps.

Mules are told to withdraw physical cash from their account and deposit it into a CATM, where the money is sent to a digital wallet controlled by the criminal.

According to Scamwatch, $141.7m was lost to scammers via bank transfers last year.

PROTECT YOURSELF FROM FALLING VICTIM

• Don’t share banking and personal details with anyone you don’t know or trust.
• If someone asks to use or ‘borrow’ your bank account, say ‘no.’
• If you suspect something is not right, reject the offer.
• Research the legitimacy of job offers by contacting companies directly using official contact information.
• Be cautious of jobs with vague responsibilities or unrealistic salaries.
• Legitimate employers never ask for money upfront.
• Don’t engage with online posts offering large sums of money.

WHAT TO DO IF YOU’RE A VICTIM

• Stop all communication with the scammer.
• Contact your financial institution if you have transferred money or suspect unusual account activity.
• Report it to police using Report Cyber.
• Report suspected scams to ScamWatch to help others avoid similar scams.
• If you were contacted via social media, report it to the social media platform.
• Use strong, unique passphrases on your accounts and enable Multi-Factor Authentication wherever possible.
• If you are concerned your identity has been compromised, contact the national identity and cyber support service IDCARE.
• If you, or someone you know, needs help, contact Lifeline on 13 11 14 or Beyond Blue on 1300 224 636; they provide 24/7 support services.
• If there is an immediate threat to life or risk of harm, call 000.
• If you are a victim of cybercrime, report it to police using Report Cyber.

Source: AFP