Money mule
Also called mule account, money mule account
A money mule is a person who moves criminal proceeds through their own bank account, or lets criminals use it, often for a fee. Some mules know what they are doing. Others are recruited through fake job adverts or romance scams. Their accounts sit at the centre of fraud and laundering networks.
How it works
Fraudsters move stolen funds out of a victim's account into a chain of mule accounts, often within minutes. Each account passes money on, splits it or withdraws it as cash or crypto, which makes recovery hard. Banks look for signs such as new accounts receiving many unrelated inbound payments, rapid outflows and devices shared across customers.
Mule accounts are how APP fraud proceeds leave the banking system, so detecting them protects victims and the receiving bank. UK rules split the cost of APP fraud reimbursement between sending and receiving firms, which gives receiving banks a direct financial reason to find mules. Handling the proceeds can also be a money laundering offence for the account holder.
The rules
Make it an offence to conceal, transfer, acquire, use or possess criminal property, which covers mules who move proceeds of crime knowing or suspecting their origin.
Any person in the UKLet a payer's firm delay an outbound UK sterling payment by up to four business days where it has reasonable grounds to suspect fraud.
UK payment service providersRequires sending and receiving firms to reimburse APP scam victims and generally split the cost equally, which targets the accounts that receive stolen funds.
Payment firms sending and receiving Faster PaymentsCommon questions
Is being a money mule a crime?
In the UK, moving criminal property can be an offence under the Proceeds of Crime Act 2002, with a maximum sentence of 14 years in prison. Prosecutors consider whether the account holder knew or suspected that the funds were criminal.
How are money mules recruited?
Criminals recruit through social media, fake job adverts offering easy money, and romance or investment scams. Young adults are frequent targets. Some recruits are coerced, while others sell or rent out access to their accounts and debit cards.
What is mule account detection?
Mule account detection is the use of transaction monitoring, device data and network analytics to find accounts that receive and pass on stolen funds. Banks score inbound payment patterns, account age and links between customers, and share intelligence through industry fraud databases.
