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 Dalton 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.
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."
Firms that explain account activity clearly, and verify identity in outbound communications, close one of the gaps criminals exploit when impersonating a brand.
"When customers receive clear, consistent messages about sensitive activity from channels they already trust, they're far less likely to follow instructions from someone impersonating their firm."
Paul Holland, Founder and CEO, Beyond Encryption (Mailock)
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.
Firms can also 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
Fraud risk is always evolving.
Criminals are creative. Their tactics shift with each new platform, technology, or life trend.
Organisations that stay plugged into fraud intelligence networks, keep staff trained, and use AI where possible are better placed to scale defences.
When trust is broken, the cost is often emotional and reputational as well as financial.
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.
Sam Kendall works on digital marketing at Beyond Encryption, helping build B2B marketing activity around research, first principles, and sustainable growth. He writes about marketing effectiveness, positioning, customer communications, and digital culture, with longer-form work published at ATNL.
Sam Kendall
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