Warning over money mule scammers targeting university students | #DatingScams | #LoveScams | #RomanceScans

University students are being urged to be on the watch for scammers who are stealing funds from young adults.

Cases of student money mules soared by 23 percent last October. The term is used to describe someone who lets criminals use their bank account to move money, which is a type of money laundering.

Mirror Online reports that more often, mules are manipulated into believing a cover story, or lured into agreement by the promise of payment. Barclays has revealed that two in five money mules are under the age of 25, while one in five are under 21.

Alarmingly, 29 percent of 18 to 21-year-olds would be happy to move money around under someone else’s direction, especially if this meant they were paid some money. What’s more, Censuswide consumer research found that if they were tricked into becoming a money mule, 78 percent of the age group would refuse to tell their bank, while another 78 percent wouldn’t tell their parents.

The warning comes as many are unaware of the significant consequences of being a money mule. Around 63 percent don’t realise that it could lead to a criminal record, while 69 percent aren’t aware they could face difficulty getting credit or loans. Students could be more susceptible to this type of criminal activity due to the cost-of-living crisis and the urgent need for additional income. Further data has shown that students’ essential spending have soared three times more than the average Brit.

Addressing the topic, Ross Martin, Head of Digital Safety at Barclays, said: “Criminals will often set up fake profiles on social media, and make posts advertising quick cash or easy investments. Always be wary of people reaching out to you online with too-good-to-be-true opportunities, get-rich-quick schemes, and requests to pass money through your bank account. Remember, being a money mule can not only make it difficult to get credit down the line – like a student loan, phone contract, or mortgage – but you could also end up with a criminal record.”

Criminals can target young people in a number of ways. According to Barclays, the most common techniques include:

1. Social media – Criminals advertise get-rich-quick schemes using pictures of bank accounts with high balances to draw people in. It’s important to remember that most easy money advertisements are not what they seem.

2. Job ads – Criminals can pretend to be a legitimate company and then ask you to process payments for them through your personal bank account. You should always do your research on the company before applying for any job.

3. Refunds – Criminals may call pretending to be from a utility company saying you’re due a refund, but they will pay you more than expected. They then ask you to send the overpayment back, but to a different account.

4. Online dating – Someone may create a fake, online profile on a dating app or on social media to form a relationship with you. They may ask you to help them move money, using your relationship to manipulate you into trusting them.

5. Investments – If you come across investment opportunities online asking you to move money on as part of the deal, this could be an attempt to get you to act as a money mule. Investments that promise to make you a lot of money when you’ve only put a small amount in can sound tempting, but this is one way criminals disguise money muling.

6. Loans – Adverts offering you a cheap loan are another way for criminals to scam people into becoming money mules, especially if they promise to give you a loan regardless of your financial history. They might say you need to boost your credit score before you can apply for the loan, and the only way to do this is to receive money into your account and move it on. Or they may overpay you and say it was an accident, and ask you to send the additional amount back to a different account.

The bank has highlighted tips for students and parents to help them avoid becoming money mules, such as:

• Have conversations about ways to keep their bank account safe. Make sure they only share their bank account details with people they know and can trust

• Help them recognise and avoid offers that look too good to be true, such as get-rich-quick schemes

• Make sure they know to be wary of anyone who approaches them unexpectedly online, especially anyone asking to use their bank account

• Make sure they understand that they should never accept money into their bank account if they don’t know where it’s from

• Question them if they start talking about a new job, or you see signs they’ve suddenly got extra money, especially if they can’t explain where the money came from