As the new academic year approaches, students are increasingly being targeted by bank account mule scams, warns Calvin Gan, Senior Manager of Scam Protection at F-Secure. Cyber criminals are preying on students and deceiving them into using their bank accounts for money laundering, which can lead to serious legal repercussions for the victims, such as criminal records.

The National Crime Agency estimates that over £10 billion is laundered annually in the UK via money mules. Students are often lured by fake online job ads promising easy money with minimal effort, making them unwitting participants in these fraudulent activities. Even more concerning, many students are unaware that participating in money muling is a crime.

How do money mule scams work?

“A mule account is essentially an account that scammers use for receiving money — trans­ferred into by the victim — before asking the account owner to transfer money out to cover their tracks,” explains Gan. “Scammers sometimes even ask for a mule’s login credentials so that they have control over the account, with the promise of lucrative monetary return.”

“Side hustle culture allows students to earn money online in more ways than ever. This, combined with the appeal of quick-earning schemes and students not fully understanding the implication of the law, makes them a prime target to be bank account mules,” he continues.

“These scams are often disguised as legitimate job ads on social media, promising high daily earnings or under the pretense of a friend or vulnerable person seeking help to receive an international fund.”

However, moving illegally obtained funds through a victim’s bank account can lead to serious legal consequences for the victim, including charges of money laundering and other criminal activities.

Why are students prime targets for money mule scams?

Gan warns that the cost-of-living crisis, combined with the ease of recruiting “mules” online — often through social media — creates a “perfect storm” for fraud schemes targeting students.

Job ads on social media often promise easy money to lure students into becoming unwitting participants in these schemes. Gan notes a troubling increase in the number of students, particularly those seeking extra income, who are being targeted by scammers.

A survey by Cifas and Opinion Matters found that over a third of 16–24-year-olds are unaware that money muling is illegal, highlighting why young people are frequently targeted as bank account mules. Both students and parents are urged to stay vigilant and educate themselves about this scam.

AI is reinvigorating time-tested tricks

“Most scams, including money muling, are not necessarily ‘new’, rather they utilize new methods and technologies to outwit victims and cyber security software,” explains Gan.

“Bank account muling has been a problem for a while, but we’re seeing different demo­graphics, like students, being targeted in different ways. Generative AI has given scammers a new edge as they can generate increasingly convincing job ads or conversations in perfect English in seconds, even if it’s not their first language.”

How to protect yourself from money mule scams

Although money mule scams are becoming increasingly sophisticated, Gan emphasizes that there are several steps students and parents can take to protect themselves:

• Never share bank account login credentials. A legitimate employer will never request online banking access details for payments or otherwise. If you are constantly pressured to receive money, even if it’s from someone you think you know, stop and talk about this with someone you can trust.

• Parents should have open conversations with their child about how they are earning money and urge them to keep their bank account details private. If possible, monitor accounts for suspicious transactions and ask them about it, especially when it involves successive incoming and outgoing transfers.

• Apply for jobs from well-known job posting sites rather than social media, when possible. Treat any jobs advertised on social media with caution and do thorough research before discussing the role. Does the company have a dedicated website? Do they have a Glassdoor profile with plenty of reviews? Are employees of the company listed on LinkedIn with active profiles?

• If earning money online, especially when it involves a larger sum of money, always verify that the online banking sender details (particularly their name) matches that of the buyer. If you are unable to verify the details or feel suspicious, report the transaction to the bank, police, or local authorities.

• If an online job offer sounds too good to be true, it probably is. This isn’t something to get involved in — participating in money mule scams can have serious consequences, including legal and financial repercussions.

• Notify your financial institution immediately if you suspect you are involved in a scam and report any suspected scams to local law enforcement. This helps trace illegal activities and prevents further victimization.