Barclays warns of 23% surge in student money mules

Barclays is issuing an urgent warning to university-goers at the start of the academic year, after new data reveals that cases of student money mules rose by 23% last October.

A money mule is someone that lets criminals use their bank account to move money, a type of money laundering. A lot of the time, money mules are unwitting, and often don’t know what’s really happening. They are either manipulated into believing a cover story, or lured by an offer of payment.

Two in five money mules are under the age of 25, and one in five are under 21. Additional research from the bank shows that over a quarter (29%) of 18 – 21 year olds would be happy to move money around under someone else’s direction, if it meant being paid some money.

Students might be more susceptible to becoming money mules due to the increasing cost of living, and a need for additional income, as data from Barclays shows that their essential spending has gone up three times more than the average Brit.

Were they to be tricked into becoming a money mule, eight in ten (78%) 18 – 21 year olds wouldn’t tell their bank, and another eight in 10 (78%) wouldn’t tell their parents. When asked why they would not speak to their parents, 33% said they would be embarrassed, 28% wouldn’t want their parents to worry, and 26% would fear how they might .

Barclays is issuing an urgent warning to young people, and their parents/guardians, of the consequences of becoming a money mule. Almost two thirds (63%) of 18 – 21 year olds don’t realise that they could potentially get a criminal record, and seven in ten (69%) aren’t aware they could face difficulty getting credit or loans³.

Ross Martin, head of digital safety at Barclays, said: “Criminals will often set up fake profiles on social media, and make posts advertising quick cash or easy investments.

“Always be wary of people reaching out to you online with too-good-to-be-true opportunities, get-rich-quick schemes, and requests to pass money through your bank account.

“Remember, being a money mule can not only make it difficult to get credit down the line – like a student loan, phone contract, or mortgage – but you could also end up with a criminal record.”

Barclays shares the different ways that criminals are targeting young people:

1. Social media – Criminals advertise ways to earn quick and easy money, using pictures of bank accounts with high balances to draw people in. Remember, most ‘get rich quick’ schemes are not what they seem.
2. Job ads – Beware of job adverts that seem too good to be true. Criminals may pretend to be a legitimate company and then ask you to process payments for them through your personal bank account. Always do your research on the company before applying for any job.
3. Refunds – Criminals may call pretending to be from a utility company saying you’re due a refund, but they will pay you more than expected. They then they ask you to send the overpayment back, but to a different account.
4. Online dating – Someone may create a fake, online profile on a dating app or on social media to form a relationship with you. They may ask you to help them move money, using your relationship to manipulate you into trusting them.
5. Investments – If you come across investment opportunities online asking you to move money on as part of the deal, this could be a lie to get you to act as a money mule. Investments that promise to make you a lot of money when you’ve only put a small amount in can sound tempting, but this is one way criminals disguise money muling.
6. Loans – Adverts offering you a cheap loan are another way for criminals to trick people into becoming money mules, especially if they promise to give you a loan regardless of your financial history. They might say you need to boost your credit score before you can apply for the loan, and the only way to do this is to receive money into your account and move it on. Or they may overpay you and say it was an accident, and ask you to send the additional amount back to a different account.

Barclays shares the following tips for parents and guardians of young people to help them avoid becoming money mules:

1. Talk to them about how to keep their bank account safe. Make sure they only share their bank account details with people they know and can trust.
2. Help them understand how to recognise and avoid offers that look too good to be true. Remember, most ‘get rich quick’ schemes are not what they seem.
3. Make sure they know to be wary of anyone who approaches them unexpectedly online, especially anyone asking to use their bank account.
4. Explain they should never accept money into their bank account if they don’t know where it’s from.
5. Ask questions if they start talking about a new job, or you see signs they’ve suddenly got extra money, especially if they can’t explain where the money came from.

09/10/2023