Criminals are increasingly recruiting young people on social media to become “money mules”, with official figures showing that cases are rising sharply.
“Money muling” is a type of money laundering in which criminals move stolen or fraudulent money via an intermediary, who receives it in their bank account before transferring it to another, obtaining a commission along the way.
Scammers are targeting young people online through attractive promises of a quick job or easy money, with a current account the only credential needed.
Experts told the Guardian that many people do not realise that they could be prosecuted for up to 14 years, or “debanked”, meaning they are unable to access bank accounts, mortgages or any other financial product.
Nicola Harding, an expert in fraud at the University of Lancaster, said that money muling was “probably one of the biggest threats to young people now” and has grown rapidly in the last five years when “nobody knew” what it was.
In 2024, the Financial Conduct Authority reported that more than 207,889 personal accounts were used for money muling in 2024 – a 22% rise on 2023, based on figures from 37 financial institutions. The highest proportion of people involved (33%) were aged 22-29.
Harding said the law has failed to keep up with the rapid expansion of digital technologies, which has resulted in online scams now representing 40% of all recorded crime.
Young people are especially vulnerable because they have grown up exposed to “get rich quick” schemes on social media, so when they are targeted by criminals “it doesn’t look so obviously a scam or illegal behaviour”.
Harding added: “If you said to that same person: ‘That woman has a bag of cash, knock her over’, they never would.”
This was Derai’s experience. When he was 19, he wanted to earn “quick money” to move from Manchester to London to launch his modelling career. He spotted an Instagram post that said, “Do you want to make quick money today?” on an account with pictures of “cars, hands holding £50 notes, holidays”.
He replied and the following day was connected with a money mule recruiter to whom he passed his bank details and ID. The money arrived in his account within a few days – but when he tried to withdraw it, his card was swallowed by the machine and his bank account was closed. A Cifas marker was placed on his account for six years, making it impossible for him to open a new account. For work, he used his mum’s bank account, which he feared created a poor impression.
“It was a bit miserable,” he said. “I was a bit depressed, frustrated that I’d done it.”
Fortunately, Derai was able to persuade the financial ombudsman to remove the marker after 10 months. He is still bombarded with money mule recruitment adverts on social media, but said: “I’ve learned, I’ve grown, I wouldn’t do it now.”
The Children’s Society’s national programme manager James Simmonds-Read said it is “really hard to get an accurate picture of the scale of this problem”, since data is likely to be “the tip of the iceberg”.
Children he has spoken to say they regularly come across fake job adverts on social media and online gaming platforms, as well as experiencing grooming-style relationships in which recruiters pose as friends with shared interests, then ask them to “help them out”, saying it’s “risk free”.
Simmonds-Read said he was working with the Home Office – which recently pledged to take action on child exploitation and money muling – to change the language, since the term “money mule” is “comparing victims to animals”.
He also urged a more joined-up response, arguing that the police, social services and banks often do not fully understand the issue. He said preventative education is needed to start from primary school age.
Jeremy Asher, a financial fraud lawyer who founded the Financial Fraud Awareness Campaign, advised parents to watch out for children getting drawn into money muling, especially during school holidays, after seeing “an alarming number” of such cases.
He said that although the fraud prevention service Cifas estimates that at least 19% of known money mules are under 21, the true figure is likely higher because no data is recorded for those under 16.
Signs might include sudden influxes of money, clothes or gifts without explanation, an obsession with making money online or via social media, a secretive attitude toward phones, apps or new online contacts, and unusual bank activity or pressure to open an account, he said.