The cost of living crisis has resulted in a surge in the number of people, most of them young, allowing their bank accounts to be used by criminal gangs as so-called money mules to move and launder money, according to Garda sources.
The latest banking intelligence shows the number of accounts in the Republic linked to money mules doubled in the first six months of the year to over 3,000, into which €12 million from frauds was deposited.
Most of those accounts were owned, or had been opened specifically for muling, by young people between the ages of 18 and 24. Intelligence from Irish banks also shows the value of an average transaction conducted by a mule in the first half of this year was €4,000, arising from wide range of online, call-based and text-based scams.
Some of those identified by the Garda as hiding money for criminals in the first half of this year were as young as 14.
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Gardaí believe more and more people have become financially vulnerable because of inflationary pressures and spikes in the cost of living this year. As a result, they are more susceptible to allowing their accounts to be used by criminals in exchange for payment. Senior Garda officers are now concerned the problem will become even more acute as winter progresses and more people suffer increased financial hardship.
Black Axe gang
The Banking and Payments Federation Ireland (BPFI) released the new data in a bid to discourage people from accepting offers of “quick and easy cash” in exchange for use of their bank account. BPFI head of financial crime, Niamh Davenport, said those payments were being offered “in exchange for something which appears as simple” as allowing their account to be used by criminals to transfer or lodge cash or opening a new account for those criminals.
“People can be conned unknowingly or coerced into working with fraudsters through social media posts, seemingly legitimate job adverts or even be approached directly in person,” Ms Davenport added.
Those who allowed their accounts to be used would have their accounts closed if caught. They would then be denied basic banking services, on the grounds they were high risk. If charged and convicted, of crimes such as money laundering or enhancing a crime gang, it would mean gaining visas to travel or work in countries like Australia or the United States would not be possible for them.
The most prolific fraud gang in Ireland — the Black Axe gang — has stolen or laundered €64 million in Ireland in recent years. While that gang has its origins in Nigeria, it has members in Ireland running a large network of mules.
The BPFI has urged people to be “very cautious” when receiving unsolicited emails or approaches “promising opportunities to make easy money, especially on social media”. It has urged people to “thoroughly research” jobs advertised as “working from home opportunities”.
It added people should never give their bank details to others, unless they know and trust them, or to allow their account to be used by any third party to facilitate a deposit, transfer or withdrawal.
Fraud gangs need very large numbers of bank accounts, opened into the names of other people, for their unsuspecting victims to send money to. They then quickly disperse that money over a wide network of other mule accounts.
That cash can be sent abroad to other mule accounts. In other cases, the money is withdrawn by mules in Ireland and surrendered to gang members before the frauds are noticed and gardaí have time to freeze the stolen money in the maze of mule accounts used to move it.
