Around 1 per cent of all current account applications are dodgy, according to new research. Financial information company Experian said money muling – where someone lets criminals use their bank account to move cash – is one of the main causes, accounting for 42 per cent of reported fraudulent accounts.
It said money mule accounts are often used for so-called authorised push payment (APP) fraud – where crooks trick people into transferring money to them. Experian said the cash can then be shifted between two and three others before being transferred overseas or to crypto wallets – then moved back into the UK financial system.
Eduardo Castro, managing director for identity and fraud at Experian UK and Ireland, said: “Many people don’t realise that acting as a money mule is illegal and carries the risk of prosecution.