Lloyds Bank Alerting Over 40s About a Fifth of Accounts
Lloyds Bank has issued a warning about the rising number of money mule accounts among individuals over 40. Data from Lloyds Banking Group’s fraud detection reveals that over-40s now represent close to 19% of money mule accounts. In the period between August 2023 and July 2024, there was a 73% increase in the number of money mule accounts held by this age group compared to the previous year.
Key Points:
- People aged over 40 now account for nearly a fifth (19%) of money mule accounts.
- Between August 2023 and July 2024, the number of money mule accounts held by over-40s grew by 73%.
- The bank’s “mule-hunting team” has discovered over 160,000 mule accounts and prevented more than £114 million from reaching fraudsters.
A money mule is someone who assists in the illegal transfer of money on behalf of another individual. Fraudsters often recruit money mules via social media, enticing them with a share of the illicit proceeds. They target individuals who typically conduct legitimate banking transactions to evade detection by financial institutions.
Tactics and Risks:
Criminals employ various recruitment tactics, such as posing as offering legitimate job opportunities or investment schemes.
When identified, a money mule’s account is promptly frozen. Younger individuals, notably students, are frequently targeted due to their financial inexperience and need for immediate cash. Statistics from Lloyds Bank show that almost a quarter (24%) of money mule accounts belong to customers aged 19 to 25.
Increasing Trends and Regional Impact:
- There is a growing trend of targeting over-40s for money mule activities.
- Parts of the UK, including Wales, the east of England, and the south-east, have observed a significant rise in identified money mules.
Engaging in money mule activities can lead to severe and enduring consequences, such as account freezing, imprisonment, and inclusion on fraud databases, making it challenging to access financial services in the future. Lloyds Bank’s Fraud Prevention Director, Liz Ziegler, emphasizes the gravity of being involved in such criminal activities. She warns against falling for scams that appear as legitimate job offers and urges vigilance.
Preventative Measures:
- Avoid receiving and sending money through your account on behalf of others.
- Do not allow anyone to control your account for money transfers.
- Exercise caution regarding unsolicited offers promising easy money, especially on social media.
- If asked by friends or family to handle money transactions, inquire thoroughly about the source and purpose of the funds.
Ziegler stresses that legitimate entities would never request the use of personal bank accounts for financial transactions. It is crucial to stay informed about money laundering schemes and avoid participating in illicit activities that could have life-altering consequences. Stay vigilant and protect yourself from becoming a victim of financial fraud.