Lloyds Bank is seeing a big increase in the proportion of money mule accounts held by people aged over 40.

Its fraud detection data, taken from Lloyds Banking Group, indicates that people aged over 40 now make up 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%, when compared with the previous year.

A money mule is someone who transfers or moves illegally acquired money on behalf of another person.

In total, the bank’s “mule-hunting team” of specialist fraud investigators has uncovered more than 160,000 mule accounts and stopped more than £114 million from getting into the hands of fraudsters since the team was set up in 2018.

Criminals are very good at making their illegal activities look like a real job opportunity and at tricking people into unknowingly recruiting family members and friends into becoming money mules

Scammers often use social media to recruit people to move money in this way, offering a cut of the cash. They target previously law-abiding people who are also using their bank accounts legitimately, to make the activity harder for banks to spot.

Criminals’ recruitment tactics vary, with some pretending it is a legitimate job or an investment scheme. Some mules are drawn in by family members or friends, who have already been recruited and may not be aware themselves that they are acting as money mules.

When a mule is identified, their account will be immediately frozen.

Younger people, including students, are particularly likely to be targeted. They may have less experience of managing finances and be particularly likely to be in need of cash.

Lloyds Bank data indicates nearly a quarter (24%) of money mule accounts belong to customers aged 19 to 25.

As well as a trend towards over-40s increasingly being targeted, Lloyds said some parts of the UK have seen big increases in the number of money mules being identified.

Wales, the east of England and the south east of England have seen particular jumps in the 12 months to July compared with the previous year.

The cost-of-living squeeze may tempt some account holders into offers of “quick cash” but the potential repercussions from being a money mule are significant and long-lasting.

As well as having their bank account frozen, money mules may face prison and be listed on the Cifas national fraud database. They may also find it hard to open another bank account or to get access to credit.

Liz Ziegler, fraud prevention director at Lloyds Bank, said: “Acting as a money mule is a serious crime and can lead to life-changing consequences. It’s vital that people are aware of these money laundering schemes and how easy it is to be lured in.

“Criminals are very good at making their illegal activities look like a real job opportunity and at tricking people into unknowingly recruiting family members and friends into becoming money mules.

“Fraudsters will keep the illusion of legitimacy up until the mule gets caught, then disappear, leaving the mule to deal with the fallout of unintentionally laundering money.

“While the realisation that you’ve mistakenly helped a fraudster clean their dirty money would be devastating for anyone, when it comes to mules it won’t save them from the consequences, which can be extremely serious.

“Always remember – no legitimate company or person will ever ask you to use your bank account to receive and transfer their money. Do not do it under any circumstances, it’s not worth risking your own future by doing so.”

Here are some tips from Lloyds Bank to avoid becoming a money mule:

1. Never receive and send money through your account on behalf of others or give anyone control of your account to do so themselves.

2. Remember no legitimate company or investment scheme will ask you to use your own bank account to transfer their money.

3. Be cautious of unsolicited offers promising easy money, especially on social media.

4. Remember it is not just strangers that can fool you into becoming a money mule – if a friend or family member unexpectedly asks you to accept or move money for them, ask plenty of questions so you can be sure you understand why they need your help. If in doubt as to where funds have come from, do not take the risk.