Money Mules

A very interesting and detailed article in spite of the whimsical title.

Little donkey ... oh no, it's a money mule!

http://thefinanser.co.uk/fsclub/2013/10/things-worth-reading-1st-october-2013-1.html

Complicit individuals are fully aware of their involvement in the process, e.g. they open the account with the intention to defraud; whilst

Non-complicit individuals are unaware of their involvement, e.g. victims of phishing attacks, account takeover, job advert scams (duped) etc"

The article also raises the issue that these accounts can, or will inevitably, be used to perpetrate fraud against the bank itself or other financial institutions, The risk is not only to the victims of fraud but also the bank itself, not only through financial loss and reputational damage but also through regulatory sanction.

The bank representative also mentions the usual profiles of those involved in the different types of fraud.

This is why the bank closes around 2,500 accounts or more every year, especially where they can see a link to a confirmed beneficiary account.

This has caused problems for the banks, but a bank simply doesn't close an account without good reason, otherwise they wouldn't have opened it in the first place.