New Barclays research shows 69% of those aged 18-24 have been targeted by a scammer or know someone who has, with the threat of money muling and revamped SMS scams both ever present.
With increased living costs to contend with, many students can find themselves targeted by a different kind of fraud: money muling.
Money muling is a type of money laundering, which involves disguising where funds really came from – for example, by moving money through different bank accounts. Criminals recruit people – ‘money mules’ – to help them do this.
The practice often starts with fake job offers, which can be a front for ‘money mule’ recruitment schemes, where criminals target individuals – often younger generations – with offers of easy money to ‘process payments’ or ‘transfer funds’ through their bank account.
Cases of student money mules increased by 23% in 2023, according to Barclays research. As well as that, 15% of 18 to 24-year-olds were targeted by a mule herder last year.
Worryingly, 35% of young people said they would consider moving money for a fee, and 14% said they are “very likely” to do so, showing there’s a lack of understanding around the consequences and seriousness of money muling.
A growing concern
Awareness of money muling is particularly low among students and young people. Seven in 10 (71%) are not aware it can lead to a criminal record, and 75% said they had no idea acting as a money mule could result in their bank account being closed, said Kirsty Adams, Fraud & Scams Expert at Barclays.
For those at risk of unwittingly becoming money mules, fear makes things worse. A quarter (23%) of Gen Z say they wouldn’t tell anyone if they found themselves involved – suggesting under-reporting remains a major challenge.
“Acting as a money mule isn’t a harmless favour – it’s a serious crime that can lead to a criminal record, frozen bank accounts and long-term financial damage. No amount of quick cash is worth that. Don’t risk your future,” said Adams.
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