Banking and security experts repeatedly warn people not to share their bank account details, credit or debit card numbers, or personal identification numbers (PIN) with anyone. Yet, many bank account holders voluntarily agree to become banking/ money mules and allow fraudsters to use their bank accounts for illegal money transfers for a fee.
So, what is a money mule? A money mule is someone who agrees to allow fraudsters to use their accounts for pass-through transactions. So, money siphoned from fraud victims is transferred to the account of a money mule, who, in turn, immediately forwards it to another account to help hide the trail or make it more difficult for the police and investigators to track down the funds. In doing so, they are assisting in criminal activity, such as cybercrime, smuggling and drug distribution, for the payment of a fee.
Greed, or desperation or need is usually the reason for agreeing to 'lend' accounts for dubious activities – in both cases, people are usually clueless about the serious legal consequences of their actions.
Earlier this week, Navi Mumbai cyber police arrested two persons who are believed to be middlemen between banking mules and fraudsters. In a report, NDTV says during the probe, it was revealed that these arrested persons handed over mobile numbers, bank account details, chequebooks and automated teller machine (ATM) cards of various persons (mules) to others involved in the crime. The investigation led to Rs32.66 crore being frozen from these accounts.
Last August, the intelligence fusion & strategic operations (IFSO) unit of Delhi police's special cell busted various modules of instant loan applications having a Chinese connection and arrested 22 people for allegedly siphoning off Rs500 crore to China by the hawala route or by investing in crypto-currency.
In July 2022, the directorate of enforcement (ED) seized Rs78 crore lying in various merchant IDs and bank accounts, taking the total seizure, in this case, to Rs95 crore.
In all cases, the common feature was the use of Indians as money mules. Cybercriminals recruit people to act as bank mules through job advertisements, online messages and emails promising easy money for minimal effort.
Most bank mules do not fully understand the illegal nature of their actions, but their involvement can have serious legal consequences, including criminal charges, financial loss, damaged credit and tarnished reputation, among others. Participating in money mule activities is a criminal offence, even if the person is unaware of the true nature of the financial transactions carried out in his/ her bank account.
I am sure 'Fraud Alert' readers will stay clear of the lure to lend their accounts, but what about people around you? Your domestic help, society watchman, or regular roadside vendor could be trapped and may even hand over their banking credentials to criminals, allowing them to access their accounts. This is easily possible at public sector banks (PSBs) where business correspondents (BCs) help with transactions with only the Aadhaar as identification.
In 2018, the response to a right to information (RTI) query by Moneylife revealed that several nationalised banks had crores of rupees in their Pradhan Mantri Jan-Dhan Yojana (PMJDY) which was introduced for financial inclusion of those in the low-income group who had no bank account. United Bank of India alone has admitted to a gigantic deposit of Rs93.82 crore in a single Jan-Dhan account. (Read: Data Suggests Jan Dhan Accounts Were Used for Money Laundering). This was even before the Covid-19 pandemic-related lockdown that rendered many people jobless and made them far more susceptible to the lure of cyber criminals.
It is essential to be aware of the potential risks associated with becoming a bank mule. In many cases, individuals involved in such schemes are victims themselves, manipulated or coerced into participating.
To avoid becoming a bank mule, do consider the following precautions:
1. Be sceptical of job offers: If you receive unsolicited job offers, especially if they promise easy money for minimal effort or request access to your bank account, be extremely cautious. Legitimate job offers typically involve a formal application process, interviews, and background checks. And they never seek access to your bank account.
2. Verify the legitimacy: Check the details of the company or individual offering the job. Look for an official website, contact information, and reviews. But keep in mind that fraudsters may create fake websites and use generic email addresses instead of using their domain-specific ones.
3. Avoid sharing personal or financial details: Never provide personal or financial information, such as bank account numbers, KYC details, including Aadhaar number, PAN or driving license (or copies of it), or login credentials, to any unknown or unverified person.
4. Avoid cashing cheques for strangers: Refrain from cashing cheques for individuals you do not know well, especially if they ask you to send a portion of the funds somewhere.
5. Be alert about unusual requests: If someone asks you to receive and transfer funds in your bank account, ask for the reasons behind such requests. Be especially cautious if the explanations seem vague or illogical.
6. Consult trusted sources: If you have any doubts about a job offer or a financial request, consult someone who knows about banking services or financial transactions.
7. Trust your instincts: If something feels off or too good to be true, trust your instincts and decline the offer or request. Fraudsters often try to rush victims into making hasty decisions.
8. Educate yourself: Stay informed about common online scams and fraud schemes. Awareness is your best defence against falling victim to these scams.
9. Report suspicious activity: If you encounter a potentially fraudulent scheme or have been approached by someone trying to involve you in illegal activities, report it to your local police station, bank or other relevant authorities. Reporting such incidents can help prevent others from becoming victims or bank mules.
Remember, cybercriminals adopt various tactics to exploit individuals and often prey on people's vulnerabilities or ignorance. Staying vigilant and cautious is your best defence against becoming a bank mule or falling victim to financial scams.
Stay Safe, Stay Alert!
How To Report Cyber Fraud?
Do report cyber crimes to the National Cyber Crime Reporting Portal http://cybercrime.gov.in or call the toll-free National Helpline number, 1930. To follow on social media: Twitter (@Cyberdost), Facebook (CyberDostI4C), Instagram (cyberdostl4C), Telegram (cyberdosti4c).
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