Warning to students - don't get caught by mule scams

Banks and the Australian Federal Police (AFP) are warning university students about money mule scams when seeking holiday employment.

The Australian Bankers’ Association (ABA) and the AFP have prepared a fact sheet, ‘Warning to students – don’t get caught by mule scams’. It warns students of the scams which trap them into laundering money for criminals by becoming a money mule.

A money mule is someone who allows their bank account to be used to receive stolen funds which are transferred to a designated account (domestic or offshore) using a money-remitting or wire service, minus a commission payment. The mule is usually approached online via email, instant message or criminals may advertise on legitimate employment websites and publications.

These scams involve people in a criminal enterprise and there are serious penalties under Australian and international laws for laundering money.

The prospect of making easy money may appear attractive. However, any 'commission' payments will be recovered as they are the proceeds of crime and the person - the money mule - could become the subject of a police investigation that could lead to a maximum penalty of 20 years’ imprisonment.

Bank customers who participate could face prosecution, will have banking facilities withdrawn and they could have their identity stolen by the criminals as well.

Banks and police advise that if you are offered an opportunity of making easy money and the offer seems too good to be true, then it probably is!

The fact sheet contains some useful tips on how to avoid these scams including being cautious about accepting job opportunities that offer you the chance of making money simply by moving money in and out of any bank account, never providing confidential banking details to anyone and taking steps to verify the background of any company or person that make you a job offer.

More tips can be read in the fact sheet at these websites:

Australian Bankers’ Association: www.bankers.asn.au/studentmule

Australian Federal Police: www.afp.gov.au