Barclays has issued a stark warning to the public following a significant 22% increase in money mule scams across the UK. New data reveals a worrying trend, with young adults being disproportionately targeted by criminals seeking to launder illicit funds through personal bank accounts.
Alarming Rise in Financial Fraud
According to figures compiled from 37 financial institutions, the Financial Conduct Authority (FCA) reported that more than 207,889 personal accounts were exploited for money muling in 2024. This represents a staggering 22% rise compared to the previous year, highlighting the rapid growth of this insidious form of fraud.
The demographic most affected is particularly concerning. The data shows that the highest proportion of people involved, at 33%, were aged between 22 and 29. This indicates that criminals are deliberately preying on younger adults, who may be more susceptible to promises of easy money or who face greater financial pressures.
How the Money Mule Scam Operates
In a typical money mule scam, fraudsters contact an individual and persuade them to receive a payment or deposit into their own bank account. The target is then instructed to move these funds, either by transferring the money to another account or by withdrawing it as cash and handing it over.
"Scammers invest time and energy in building trust with their targets," explains the warning. They often dangle incentives, such as allowing the victim to keep a portion of the money or offering gifts in exchange for the temporary use of their bank details. In some extreme cases, they may even ask for the victim's debit card to access the funds directly.
Expert Warnings and Public Advice
Neil Scriven, Lending Fraud Director at Barclays, urged consumers to exercise extreme caution. "As a general rule, if it looks too good to be true, then it almost certainly is – especially when money is at stake," he stated. He advised that any unexpected money, particularly from an unknown source, should be treated with immediate suspicion. "It’s a clear sign that you are being targeted. If you don’t know where money has come from, then you must question why you are receiving it."
Academic experts echo the severity of the situation. Nicola Harding, a fraud specialist at Lancaster University, told the Guardian that money muling has become "probably one of the biggest threats to young people now" and has expanded rapidly over the last five years from a relatively unknown crime.
James Simmonds-Read from The Children’s Society added that the true scale of the problem is difficult to gauge, noting that the available data is likely just "the tip of the iceberg." This underscores the hidden nature of the crime, with many cases going unreported.
The collective message from banks, regulators, and charities is clear: the public must remain vigilant. Never agree to receive or transfer money for someone you do not know and trust implicitly, and always question unsolicited offers that involve your bank account.
