STUDENTS of Donegal ATU have been urged not to act as ‘money mules’ by criminals in order to launder the proceeds of crime.
The fresh warning from the President of the Students’ Union, Barry Breslin comes after new figures show nearly €17.5m was transferred illegally through so-called ‘money mule’ accounts between January and June of this year.
The flow of cash represented an increase of almost 50 per cent on last year.
A money mule is a person who receives criminal money into their bank account and them moves it on to another account. In return they often receive payment or an expensive gift.
In February of this year two former local students were each handed down community service in lieu of a custodial sentence when their cases were dealt with at Letterkenny Circuit Court.
Speaking to the Donegal News, Mr Breslin said the crime is very much a ‘hidden’ one but can have far-reaching implications for those who become caught up in it.
“This is something we are very concerned by, and it is something that we tried to tackle last year.
“We contacted An Garda Síochána to come in and talk with our students. For us, this was very much a hidden problem.
“We also contacted solicitor Maureen Gallagher who came in to talk with students. She told them of having to represent students in court who were charged with money laundering offences. She pointed out how if a person is 18 they will be charged as an adult no matter if the incident arose from a person being innocent and inexperienced.”
Criminals will often target victims online by befriending them on social media. Mr Breslin said caution should be taken with accepting friend requests from people who you do not personally know in everyday life.
“If you don’t know that person in your everyday life, do not have them on your social media. There are just too many consequences of getting involved in this type of criminal activity and often young people don’t know the implications, such as preventing travelling on a J1 for example.”
Mr Breslin said Donegal ATU are continuing to highlight awareness on this issue. He appealed to students who are experiencing difficulties because of the cost of living crisis to contact the Students’ Union for help and support.
“Our advice is that is something sounds too good to be true, it probably is. The cost of living crisis is making money scarce for everyone but we urge students not to get involved in this criminality. The ATU has financial supports available in place to help students in this regard. Please come forward for help and support if it is needed.”
Meanwhile, more than 2,600 money mule accounts were identified by members of the Banking and Payments Federation Ireland’s (BPFI) FraudSMART campaign during the first six months of the year.
The average amount involved was €10,000, more than twice what was recorded in the first half of last year.
“This may reflect increased levels of activity in text message scams and investment fraud observed by FraudSMART in recent months, as criminals seek ways to launder their profits,” said Niamh Davenport, Head of Financial Crime at BPFI.
Students are particularly targeted by criminals to act as money mules, the BPFI said.
Ms Davenport told RTÉ’s Morning Ireland: “There may be an ad saying, would you like to make a quick buck or a few hundred euro.
“It’s easy, all you need to do is give me your bank account details. Money will be transferred into your bank account and you will be asked to transfer that onto another bank account. So you are basically putting stolen money through the system.”
Some people as young as 15 have been involved, although in general, most money mule bank accounts belong to 18-24 year olds, she said.
“Criminals frequently target young adults, usually recruiting them through social media ads and messages, but they are also known to approach young people in-person outside schools, colleges, or sports clubs.
“The money transferred by money mules are proceeds of crime, often stolen from innocent victims of text message scams and other types of fraud that our own friends and family can fall victim to.
“Not only that, but the money being laundered is often used by criminals to facilitate other serious crimes such as terrorism, drug trafficking and people smuggling. This is why the consequences faced for money muling are so serious and can result in a criminal record.”
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