Money Mules & Financial Crime: Protecting Clients from Hidden Threats

What if your customers were unknowingly caught in a criminal network -  all for doing a friend a favour?

Stephen Dalton, Director of Intelligence at Cifas, joins us to unpack one of the most hidden and dangerous fraud threats facing consumers and businesses today: money muling.

We explore how criminals exploit individuals to launder stolen funds, and how regulated organisations can protect customers before they're caught in the crossfire.

From romance scams to fake jobs, money mules are being recruited in increasingly deceptive ways.

Stephen shares new data and expert advice to help financial firms, advisers, and regulated businesses educate, detect, and prevent the spread of this fast-growing risk.

Understanding The Money Mule Threat

Money muling is a type of fraud where individuals allow their bank accounts to be used to move stolen funds.

It’s a subset of money laundering, often involving criminals collecting money from victims of scams like romance or investment fraud, then moving it through ‘clean’ accounts to hide its origin.

Some money mules are complicit, knowingly taking a cut of the funds in exchange for access to their accounts.

Others are unaware they’re involved in criminal activity, especially when lured by fake jobs or emotional manipulation.

"The money that's being moved has been stolen from somebody's savings or their pension."

Stephen Dalton, Cifas

How Widespread Is Money Muling?

Cifas operates the UK's National Fraud Database, tracking reports from over 800 member organisations including banks, telcos, and local authorities.

In 2023, over 34,000 cases of money muling were filed - that’s around 95 cases a day.

While this figure slightly declined from the previous year, it’s not necessarily due to less fraud.

Stephen explains that banks are becoming more cautious about reporting due to the difficulty in proving whether someone was complicit or a victim.

Criminal networks are also becoming more sophisticated, coaching young people on how to claim victimhood to avoid detection.

Youth and Vulnerability: Key Risk Groups

Young people are especially at risk of becoming money mules.

61% of all cases Cifas saw in 2023 involved individuals under 30.

One in five involved people under 21, with the 18-19 age group showing rapid growth.

They’re targeted through social media and fake job ads offering quick money, often without fully understanding the consequences.

Other vulnerable people include those experiencing emotional or financial hardship, particularly victims of romance fraud.

Perpetrators prey on loneliness and financial stress, creating a false relationship or job offer to build trust and gain access to accounts.

The Role Of Social Media And Online Platforms

Social media platforms are a critical part of how criminals recruit money mules.

Influencers may unknowingly promote money-muling scams by sharing 'get rich quick' videos or partnerships with fraudulent schemes.

Stephen notes that fake job listings and relationship scams are common across digital platforms.

"It can appear to be a very easy way to make money... And often the individual doesn't realise it's actually illegal."

Stephen Dalton, Cifas

A Call For Stricter Regulation

The UK’s Online Safety Act introduced new codes of practice for digital platforms, enforced by Ofcom.

These require social media companies to combat the spread of fraudulent content such as scam jobs and fake accounts.

The aim is to reduce instances where people - particularly the young and vulnerable - are led into becoming money mules via online deception.

AI’s Dual Impact On Financial Crime

Generative AI is lowering the barrier for criminals to launch scams at scale.

AI tools can rapidly create fake social media accounts, phishing emails, or credible job adverts, making it harder to detect deceit.

At the same time, AI also holds huge potential for fraud prevention.

Firms can use AI to analyse account activity, flag suspicious behaviours, and monitor changes in patterns at scale.

Stephen explains that AI enhances behavioural surveillance by learning a normal customer baseline, then alerting teams when out-of-pattern transactions occur.

Detecting Red Flags: What To Watch For

For financial advisers or relationship managers, changes in client behaviour may indicate underlying fraud activity.

Here’s what to watch for:

• Unusual deposits followed by outgoing transfers to unfamiliar accounts.
• Inconsistent stories about why money is moving or where it came from.
• References to “helping a friend” or “moving money for someone”, especially when involving overseas individuals.

At an enterprise level, AI helps identify these risks instantly across millions of transactions.

This allows fraud teams to focus time and effort on reviewing high-risk cases.

Using Communication As A Fraud Defence

One of the most effective prevention tools isn’t technology - it’s communication.

When customers receive consistent, clear messages about account activity, their awareness rises.

More importantly, they’re less likely to be tricked by fraudsters pretending to be their bank or insurer.

Stephen suggests businesses should educate customers proactively using omnichannel comms: email, app notifications, educational SMS, or in-branch conversations.

"Engaging with your customers so they understand not only the risks, but what you're doing to protect them - that’s the most important thing."

Stephen Dalton, Cifas

Education And Behaviour Change

Changing behaviour isn’t easy, but it’s critical.

Cifas partnered with UK Finance to launch the Don’t Be Fooled campaign to battle youth money-muling.

The campaign targets schools, colleges and parents with resources to raise awareness before a young person gets recruited.

Stephen also recommends firms explore ongoing education through webinars, toolkits, and internal fraud training for staff.

In regulated sectors, duty of care extends beyond compliance - it includes customer understanding and enablement.

Final Advice For Businesses

It’s vital to remember: fraud risk is always evolving.

Criminals are creative. Their tactics shift with each new platform, technology, or life trend.

Stephen encourages organisations to stay plugged into fraud intelligence networks, keep staff trained, and use AI where possible to scale defences.

Because when trust is broken, the real cost isn’t always financial - it’s emotional and reputational.

Cifas' latest intelligence report, Fraudscape 2025, is out now.

FAQs

What Is A Money Mule?

A money mule is a person who transfers stolen funds on behalf of criminals, often using their own bank account.

How Are People Tricked Into Money Muling?

Through fake job offers, online relationships, or financial hardship, criminals lure people into helping “move money” without explaining it's stolen.

Why Is This A Serious Offence?

Money laundering is a criminal act with penalties up to 14 years in prison, even for people who claim they didn’t know.

How Can Businesses Protect Customers?

By educating clients on scams, monitoring for unusual activity, and using technology like AI to detect suspicious account use.

Can AI Prevent Money Muling?

Yes, AI helps by identifying behaviour patterns, spotting irregular transactions, and scaling fraud detection across large customer bases.

References

Money Laundering And Illicit Finance, UK National Crime Agency, 2025

Annual Fraud Report 2024, UK Finance, 2024

Online Harms White Paper, Home Office, 2020

Fraudscape, Cifas, 2025

Don't be Fooled, 2024

Reviewed by

Sam Kendall, 17.04.2025