Desperate South Africans are becoming money mules – here’s what you need to know
Banks have warned that the number of South Africans being tricked into becoming money mules has rocketed in the past three years as cash-strapped individuals break under the financial pressures of the rising cost of living.
This is according to the head of transactional fraud at Standard Bank, Nokuthula Motlhomi, who said fraudsters are increasingly targeting vulnerable and cash-strapped individuals as they look for ways to make money due to rising unemployment rates and the runaway costs of living.
“Fraudsters are increasingly focusing on weak and cash-strapped people to recruit as money mules. Those who transport stolen money via their financial system on behalf of criminals,” said Motlhomi.
“The number of people in South Africa suspected to be money mules has soared in the past three years. With increasing unemployment rates, people are looking to make money, even if it means being involved in something unethical or illegal,” she added.
While it may seem tempting for some, Standard Bank reminds people that acting as a money mule is a criminal offence, and anyone found to be involved in this form of illegal activity could face criminal charges.
How criminals who recruit money mules operate
According to Motlhomi, criminals lure victims by promising money in return for depositing physical cash from illegal activities into their accounts and then transferring that cash into different accounts.
In many instances, money mules may also be scammed out of the money promised. She said another way of convincing victims into being money mules is under false pretences.
Criminals won’t disclose that the funds are illicit but instead put forward an enticing reason that the person in financial need deems as a potentially harmless and profitable opportunity.
“These criminals know the weak spots of their targets and are often persistent in their approach,” she added.
Some lines of approach include:
- An unsolicited email or social media message that promises easy money for little or no effort with no specific job description;
- Job descriptions and roles referring to ‘Financial Transaction Control Analyst’ or similar job titles;
- A request to open a bank account in your own name or in the name of a company you form to receive and transfer money; and
- A request from what seems to be your existing employer to receive funds in your bank account and then “process” or “transfer” funds via cryptocurrency wallets and the promise to keep a portion of the money you transfer.
Top targets for money muling.
Motlhomi said that money mules are recruited from various backgrounds, ages and gender groups.
Ideally, they would target individuals without criminal backgrounds to better evade the scrutiny of authorities, she said, adding that they target both economically desperate South Africans and foreign nationals.
According to the South African Banking Risk Information Centre (SABRIC), criminals often approach people who may not have an existing bank account. Fraudsters will then provide them with the necessary documentation and ask them to open accounts for them to transact on their behalf.
“Because foreign nationals experience such difficulties and people want to be neighbourly, many people have been tricked into opening accounts that are subsequently used by criminals to launder money,” SABRIC guidance notes.
Consequences for individuals acting as money mules
Working as a money mule is a criminal offence, and mules could face severe consequences if caught. Most money mules can be charged with money laundering and bank fraud.
Motlhomi also noted that additional criminal charges may be added depending on the fraud scheme.
“Not only that, but money mules could also damage their credit and financial standing, lose their job if employed or diminish any chance of being employable as they will be added to offender lists.
They may even be held responsible for repaying funds lost by victims of fraud,” added Motlhomi.
Standard Bank strongly advises anyone approached to act as a money mule to think twice before agreeing, as the risks far outweigh the reward. Instead, stop all communication and report the matter to their bank and the police.
“The best way to protect yourself from any online scam is to remain sceptical of anyone asking you for personal or financial information,” she said.
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